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Fit for projects


fit for success

Project Management
the Siemens way

((U2))

Co
m
m

itm

en
t

Commitment

Introduction

Dr. Heinrich von Pierer


We are close

Here at Siemens we see professional project management as a crucial factor


in our success. Projects make up the bulk of our business. This is why the
Corporate Executive Committee is stressing the ongoing development of
project management to ensure that project managers are optimally qualified.
With the PM@Siemens Initiative, we have devised an effective tool enabling
us to handle projects more profitably than was frequently the case in the
past. We are on the right track with our initiative so far the goals are clearly
formulated, measures have been defined, and roll-out in the Regions means
that we are close to arriving at our objective of a uniform project manager
culture. Now it is up to you to lead the PM@Siemens Initiative to success
through committed Best Practice Sharing, resolute actions and the pooling
of our strengths, both at Group headquarters and in the Regions.

Dr. Heinrich v. Pierer

As an important contribution to improving profitability at Siemens, we


started the Siemens Project Management Initiative PM@Siemens in fiscal
00/01, initially with 8 Groups (PG, I&S, ICM, ICN, TS, SD, SBS and PTD).
Our aim is to improve project management throughout Siemens, by means
of Best Practice Sharing, and to put into practice a range of standard
approaches, tools and control variables in all groups.
We are proud to say that since then we have achieved results which are
taking visible effect throughout Siemens. The SV and SBT Groups joined the
Initiative a good six months ago while the A&D and Med Groups also decided recently that they would participate. Roll-out in the Regions as well as in
the USA is under way.
This updated PM Guide is a good example of our Best Practice Sharing at
Siemens, as it already incorporates the learning curve from our experience
with the old guide:
a an uniform defined project process throughout Siemens
a 7 enhanced modules
a 5 new modules (Processes/Roles, Operative QM, Knowledge Management,
Project Purchasing, Small Projects)
All the obligatory and optional measures must now be implemented rigorously in your Group. This is where everything depends on you: Do not re-invent
the wheel, but instead put the recommended Best Practice to use. In doing so,
you will be supported by a committed team led by Dr. Schloss, who heads this
Initiative.
To track your progress use a proven most effective tool: project management
assessments (self assessment as well as CT SE conducted assessment). The individual Groups will keep me regularly updated on progress, on assessments
(PMA and CT SE) and on the quality of results yielded by the projects.
I wish you every success.

Edward G. Krubasik

Our commitment to
project management

Dr. Jrgen Schloss, PTD


Fit for projects fit for success means for me a global approach on the part
of our Project Managers. We want our Project Managers to never lose sight
of their objectives and to manage our projects professionally and efficiently.
We want our customers to come back to us with their future business as well;
we want them to be satisfied and to be successful with our systems and
equipment. I believe this collection of examples and recommendations for
our project management offers a sound basis for long-term success in our
projects and processes. With the roll-out in the Regions our ultimate aim is a
worldwide project culture throughout all the Groups. It is precisely in the international implementation of projects that a great deal of potential lies.

Alfred tsch, A&D


Profitable solutions business is conditional on professional project management, and professional project management means satisfied customers who
come back to us with their future orders.
This is what the PM@Siemens Initiative is all about.
Learning from others and Siemens-wide Best Practice Sharing are the key
levers that will give us a competitive edge and ensure the sustained profitability of our solutions business.
We at A&D are glad to be taking part in this worldwide Siemens Initiative.
The success of our products business is both an incentive and a guide for our
solutions business.

Joachim Mller, I&S


One of the crucial factors responsible for the success of our systems business
is that our project management has become something we can take for
granted.
It is very important to me that our Project Managers are among the best in
their respective areas of responsibility or that they are on their way to attaining that status.
I will personally focus more on Project Controlling and will participate in the
process.

Lothar Pauly, ICM


In ICM Networks, we see the Project Manager as an entrepreneur. We have
therefore established an organization in Sales/Project Management whereby
the Project Manager is given the necessary room to move. We support the
PM@Siemens Initiative in order to provide our Project Managers with
extensive tools for handling their projects successfully.

Anton Hendrik Schaaf, ICN


Based on the proven methods of PM@Siemens, ICN has made significant
progress in project management the PM Improvement Program has taken
effect. Methods proven in the other Groups have helped us a great deal.
The task facing us now is to further put our findings into practice quickly and
rigorously, so that we can gain a profitable position in the telecommunications market.

Goetz Steinhardt, Med


Our customers expect us at Medical Solutions to understand their workflows
from start to finish; they want us to optimize the procedures involved in
terms of both efficiency and effectiveness.
Quality up, Cost down is what we strive for.
Just like the projects we handle for our customers, our internal processes
must be equally up to the mark.
Project management is a core competence at Med.
PM@Siemens is yet another opportunity to strengthen this competence.

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.

Jrgen Frischmuth, SBS


On-schedule and customer-specific project management must be second
nature to us. The finalizing of complex customer projects with effective
deployment of resources and clear value added for our customers is crucial
to our success. This is why professional project management is the central
lever in a sustained improvement of our results and in setting ourselves
apart from our competitors.

Dr. Peter Drexel, SD


Our objective in systems business is to achieve profitability and customer
satisfaction on the basis of convincing quality. Best Practice Sharing in the
context of the Siemens Project Management Initiative grants SD access to all
the Siemens project management know-how a great advantage for our
young enterprise.
We are making good use of this opportunity in our PM@SD Group project
and have introduced uniform minimum PM standards and principles
throughout SD. This is already bearing fruit: an improvement in process
quality resulting from higher margins in new orders and reduced cost
overruns during processing are already evident at this early stage. The longlasting effect is ensured by stringent controlling.

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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.

Oskar Ronner, SBT


In Autumn 2002, SBT resolved to standardize and harmonize worldwide the
core processes of our three Solutions Divisions for Sales, Project Execution
and Service. Only this way can we arrive at the necessary Excellence in Operations. Roll-out in the various countries is under way and is scheduled for
completion by the end of 2004. Although SBT's average project volume
amounts to around EURO 30,000 and thus is significantly below the figures
of other Groups, our local entrepreneurs who execute these projects worldwide in 500 branches face the same challenges as do those dealing with the
larger-scale projects. Consequently, we are now dedicating a great deal of effort to the new module, Small Projects.

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

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13

Fit for projects fit for success

Fit for projects fit for success is the motto


of the PM@Siemens Initiative. These words
signal primarily that we have achieved measurable success since the Initiative got going
and secondly that we have come a lot closer
to our ultimate objective of a uniform
project culture. It is precisely in times of
tough predatory competition and cautious
customer decisions that projects business is
only attractive if it is handled successfully
in terms of both customer satisfaction and
positive results. We can move the goalposts
on both issues: optimized processes make us
reliable and calculable for our customers;
they also improve our EBIT, irrespective of
whether large or small-scale projects are concerned.

Dr. Jrgen Schlo, PTD

This is why we have dedicated a separate


chapter to the topic of Small Projects.
Small may denote the volume or complexity of a project, but not necessarily its significance for us.
Project Managers our future success is in
your hands. With your know-how, your commitment and your will to use the resources
at your disposal and establish them in your
teams, we will meet our targets in project,
system and service business.

Joachim Fischer, PTD

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On the home stretch


Customer requirements are shifting, the market is changing continuously, technological
leaps are enormous this is why ongoing
training and learning are vital for successful
project management. You, the Project
Manager, must rise to this challenge. The
PM@Siemens Initiative will provide the resources and training facilities. Here the
PM@Siemens Academy will play a particularly important role in offering career and qualification concepts that have meanwhile established themselves throughout Siemens.
The first Project Managers have already
been certified.
This PM@Siemens Guide provides information on the current status of the
PM@Siemens Initiative.

53 recommendations have meanwhile


been drawn up. Group-specific implementation thereof is now complete, including
Scorecard Controlling.

A career model applicable throughout


Siemens has been devised, in close cooperation with CP. This model comprises
uniformly organized qualification stages:
Team Member, Project Manager, Senior
Project Manager, Project Director.

The PM@Siemens Academy is firmly


established and already offers the standard course program PM4 to PM1, which
will in the future be organized and run
by the Learning Campus.

All Groups apply standard assessment


procedures to measure the level of
maturity in processes and projects.

The PM@Siemens Portal a joint venture


project with CIO is in course of development and is setting new standards for
communication and international cooperation in project teams.

A standard auditing module for project


management has been devised jointly
with CD A and is already being applied.

Rollout has taken place in 20 Regional


Companies and in the US.

Consolidating what has been


achieved so far meeting future
targets
The PM@Siemens Initiative was introduced
to the Groups last fiscal year as a significant
means of improving profitability, with the
aim of giving Siemens a clear edge over the
competition through a standardized scale of
qualifications for its Project Managers. In addition to the first Groups to join (PG, I&S,
ICM, ICN, TS, SD, SBS and PTD), SV, SBT, A&D
and Med have since adopted parts of the
Initiative. No small measure of success has
been recorded:

The positive response to the PM@Siemens


Initiative and the committed cooperation of
all Groups demonstrate not only the paramount importance of such activities but also
the strong will to succeed.
With all this, we have taken a further significant step on the road towards a uniform
project culture, an aim which is vital to our
success.

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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.

We expect the same commitment to project


management from all our executive staff.
Each and every one of you is responsible for
ensuring that all business coordinators and
project staff are aware of the need to continuously improve project management. You
will have support in the form of detailed and
practical recommendations provided by
Project Management. To avoid mistakes and
minimize risks, you must likewise ensure
that any experience gained is subsequently
incorporated into projects and processes. As
a result, in your capacity as a leader and a
Project Manager, you exert considerable influence on the quality of project management in our company, and consequently on
the quality of project results.
Active Best Practice Sharing will provide us
with valuable synergy effects, which will be
of great benefit to everybody.

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The Siemens way

Initiator: Dr. Krubasik

Chairman: Dr. Schloss, PTD CEC


Coordination: Fischer, PTD QM

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

Bamberger Dr. Viethen Eckert

Organization
of the Initiative

Jung

Dr. Schlegel

Piegsa

Kessler

Husemeier B. David

Dr. Mayer

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Processes and Roles

Contract Management

Project Controlling

Personnel Management
PM Portal

Qualification

Project Management
the Siemens way

Operative Quality Management

Knowledge Management

Processes, Transfer and Implementation

PM Assessment

Project Procurement

Small Projects

The
main topics

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s
s se
ce
Pro d
an
les
Ro

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Processes
and Roles

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Processes and Roles

In order to achieve our objective, i.e. to arrive at Siemens-wide project management


standards, it is essential that the processes
relevant for project handling be defined in a
uniform fashion and integrated into the
Siemens Process House.
This creates the basis for implementing process improvements into practice throughout
Siemens, through the application of uniform
procedures, methods and roles in project
handling.

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

The planned further detailing will also reveal


cross-Group synergies for IT tools.
The generic project phase model was devised as a first but crucial step involving precise milestones. It forms the basis for further
detailing and introduces a uniform processing language.

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

The PM@Siemens project phase model forms


the basis for further work.

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

Depending on the type of business, some


project phases may be inapplicable (e.g.
component delivery order).
The representation of a complex handling
process as a linear phase model entails the
seemingly insuperable, system-inherent
problem that the real process passes
through the described phases several times.
The process representation with its milestones is still valid, however for each component as well as for the system and is
thus a valuable tool.

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

Investment approval for defined sales resources

Outline description of customer and business context

Outline description of the identified expected order


(scope of supply and anticipated sales)

PM080
Start project

Project
opening and
clarification

PM100
Entry
order
clarified

Detailed
planning

PM200
Approval
of detailed
planning

Mandatory results for each project milestone

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

Investment approval for defined bid preparation resources

Supplemented expected order document

Documented customer inquiry

Analysis of context (strengths, weaknesses, opportunities, and risks)

Rough risk and cost estimate

Planned project/service share and volume, expected profit

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

Detailed project description (project plan and solutions)

Detailed project cost calculation (sales, EVA)

Completed bid documentation

Approval by all organizations involved

Current risk assessment

Current project classification

Approval for submission of bid to customer

Signed bid approval

Defined negotiation framework

Project
opening and
clarification

PM100
Entry
order
clarified

Detailed
planning

PM200
Approval
of detailed
planning

Mandatory results for each project milestone

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

Signed acknowledgement of order

Final contract documentation

Described changes to the bid


(resources, legal aspects, solutions, etc.)

Revised risk evaluation incl. risk assessment, likelihood of occurrence


and actions to reduce risk

Approval by risk Review Board in charge

Adapted escalation level

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

Project Manager and Commercial Project Manager appointed

Complete contract and bid documents handed over to Project Manager

Changes between contract and bid documented

Scope of delivery and cost calculation adapted

Risk analysis and adjustment of actions to reduce risk

Final dialog held with Bid Manager

Detailed
planning

PM200
Approval
of detailed
planning

Mandatory results for each project milestone

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

Project organization completed

Detailed agreement with customer on scope of deliveries/services and specifications

Change and claim strategy completed

Contract structures adapted

Target agreements drawn up

Project structure created

As sold cost calculation finalized

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

Approved documents for erection

Approved documents for purchasing

Selected suppliers/service providers

Completed service concept

Project
handover

PM080
Start project

Project
opening and
clarification

PM100
Entry
order
clarified

Detailed
planning

PM200
Approval
of detailed
planning

Mandatory results for each project milestone

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Notification of completion ready

Packing list with current weights and


dimensions of packing units

Export declarations prepared

Pro-forma invoice for customs clearance

Packaging and dispatch information

Notification of readiness for erection

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

Goods received and incorporated in inventories

Site ready for erection

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

Mandatory results for each project milestone

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Erection completed

Erection reports prepared

Handover of all documents to commissioning

Commissioning instructions prepared

Site ready for commissioning

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

Documented list of open points

Documented commissioning results/tests

Updated execution documents prepared

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

Mandatory results for each project milestone

33

Provisional customer acceptance signed

List of open points adopted together with customer

Acceptance test documentation completed

Provisional customer documentation drawn up

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

Final customer acceptance signed

Bank bonds obtained

Final customer documentation prepared

Final project report prepared

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

Allocate overall and commercial Project


Managers

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

Clarify contract in legal


and commercial
terms

Freeze basic
schedule

Level 2

Level 3
to
Level 4

Record preacquisition and


project data

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)

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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

Certain activities typical of projects business


cannot be illustrated in a phase model.
These enablers are summarized separately
and will be subsequently anchored in the
Reference Process House with Siemens CIO.

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.

Roles in project processing


Direct project role
a
a
a
a
a
a
a
a
a
a
a
a
a
a

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

Various roles may be combined;


the two-head principle
should be maintained
In addition to classic direct project roles, the
essential connecting roles have also been
defined, in order to mirror the essential interactions in project processing.

Task descriptions are developed for each


role. Following further adjustment, these
descriptions may be viewed on the
Initiatives homepage:
http://projectmanagement.siemens.com.

38

Outlook for further work


In the next steps, the project phase model
will be aligned to the Reference Process
House (CRM, SCM, PLM), in close coordination with process standardization activities
at CIO. An integrated project view of the
RPH is thus created.

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

The project phases defined by PM@Siemens


form the basis for the link-up to the RPH.

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.

Especially in the bid phase, the integration


of the Contract Manager into the organization should be close to the operative business concerned; however, he/she should be
sufficiently independent so as to be
able to bring matters before the relevant
Divisional or Subdivisional management in
the event of any conflicts.
The introduction of the bid/no bid and bid
approval procedure (graded according to
project and risk categories) is still recommended as an important precondition for implementing the Contract Management concept in the Groups. For the highest risk
categories, Group Executive Management
must be consulted.
Using this structured approach, non-conformance costs (liquidated damages, additional
costs) can be reduced significantly, thereby
achieving a sustained improvement in project results. Further considerable savings
can be achieved by way of a more focused
project selection (bid/no bid; improved hit
rate; see recommendation 3).

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

The recommendations issued within the


scope of the PM@Siemens roll-out in March
2001 were revised and adapted by a team of
experts in April 2003. We no longer differentiate between the mandatory and optional
introduction of the individual recommendations, as all of the recommendations should
be adopted without exception.

D. Roll-Out and Feedback

Overview of recommendations

B. Standard Contract Management Tools

A. Concept for Contract Management


at Siemens

7. Mandatory observance of unacceptable


regulations

1. Independent Contract Management


function

8. Mandatory specification of a Group policy


for Group projects business

2. Provision of full-time Contract Managers


in the bid and negotiation phases for projects of the highest project/risk category

9. Intensive use of available standards and


tools

3. Documented bid/no bid procedure/


approval for preparing a bid

C. Communication and Training

4. Implementation of a bid approval procedure with project and risk categories uniform for all Groups

10. Mandatory training in Contract Law and


Claim Management for Sales & Marketing
and Project Management (technical/commercial)

5. Final bid approval by a Review Board, in


the highest project or risk category jointly
with Group Executive Management

D. Roll-Out and Feedback

6. Provision of full-time Contract Managers


for the implementation of projects of the
highest project/risk category

11. Continuation of the Siemens Contract


Management Community, which was established in October 2002
12. Implementation of the recommendations issued by PM@Siemens in the form of
a defined Group project

45

Roll-Out/Feedback

11

Continuation of the Siemens Contract


Management Community, established in
October 2002

Implementation of the recommendations


issued by PM@Siemens in the form of a
defined Group project

12

Communication/Training
Mandatory training in Contract Law and Claim Management for Sales & Marketing and
Project Management staff (technical/commercial)

10

Standard Contract Management Tools

Mandatory observance of unacceptable


regulations

Intensive use of available standards


and tools

Mandatory specification of a Group policy


for Group projects business

Concept for Contract Management

Independent Contract Management


function

Provision of full-time Contract Managers in


the bid and negotiation phases for projects
of the highest project/risk category

Documented bid/no bid procedure/approval


for preparing a bid

Implementation of a bid approval procedure


with project and risk categories uniform for
all Groups

Final bid approval by a Review Board, in


highest project or risk category jointly with
Group Executive Management

Provision of full-time Contract Managers


for the implementation of projects of the
highest project/risk category

46

Contract Management in the


project phases

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

Contract Management after


contract signature

a Contract analysis, commenting,


revising of supply and service contracts
and cooperation agreements

a Contract analysis in terms of opportunities and risks, claim potential


and the procedures to be applied

a Negotiation support up to final contract


draft and contract signing

a Drafting and controlling of subcontractor agreements

a Risk management within the project


team concerning terms and conditions

a Analysis of contract and issues for claim


risks and opportunities

Contract Manager profile

a Implementation of the claim concept/


claim strategy in the project
a Commercial and/or contractual
background
a Experience in sales and/or project
implementation
a Comprehensive know-how in project
business, negotiation skills

a Technical or business administration


background, possibly as quantity
surveyor
a Training and experience in Contract
Law and Claim Management
a Comprehensive know-how in projects
business

47

A. Concept for Contract Management


1. Up to contract signature

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-

tractual basis for Change Order and Claim


Management. Contract Management is also
responsible for ensuring compliance with
business principles and procedures in the
bid process, as well as for ensuring involvement of the specialist departments (Legal
Services, VVK etc.), where applicable.

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.

A Contract Manager should have sales &


marketing and project experience, business
administration knowledge, sound experience in contract law/preparation of
contracts, negotiation skills and a good
knowledge of business principles and
processes.

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.

On that basis, the meeting serves to discuss


the bid strategy, the factors involved in success and the prospects thereof, the units
own competitive position (if applicable, its
unique characteristics) etc., and the extent
to which the project reflects the core business policy of the unit. The budget for preparation of the bid should also be approved in
this meeting.

Within the context of risk management, this


meeting is very important for identifying
and dealing with opportunities and risks at
an early stage.

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

a Technical and schedule risks (innovation,


exotic solutions, critical performance
guarantees, non-Siemens products etc.)
and

a Financial risks (payment, production and


export risks, implementation risk, financing risk etc.)

a Organizational or process risks (consortial


cooperation, involvement of Regional
Company, internal resources etc.).

a Contractual risks (liability, acceptance,


warranty, liquidated damages for delay
and non-achievement of performance
guarantees, applicable law etc.)

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

The technical part of the bid is approved by


the responsible technical units in accordance with a stipulated risk classification.
To this end, the technical units must produce binding commitments, incl. performance characteristics.

The essential contractual contents (liability,


warranty, liquidated damages etc.) are also
to be approved in a standardized fashion
that is to say in accordance with Terms &
Conditions. Limits of Authority Guidelines or
corporable procedures issued by the Group
or Division.

In a parallel process, the units responsible


for calculating costs submit their binding estimates which are taken into consideration
in the total cost and price calculation.

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

2. After contract signature

From the time the contract is signed, the


main focus of Contract Management lies on
pro-active Claim Management (including
Change Order Management). By analogy
with Contract Management prior to signing
of the contract, Claim Management plays an
important role in risk management as it analyses the opportunities and risks inherent in
the customer contract (including the technical sections), identifies the potential for
changes and claims and defines the procedural rules that have to be observed. Apart
from that, the second main task of Contract
Management is to support the drafting and
administration of subcontractor agreements,
for the purpose of risk transfer and defending or enforcing claims.
Contract implementation (customer, consortium and subcontractor agreements), also involves identifying out events relevant to the
contract and assessing them in terms of
claim risks (incoming claims) and claim opportunities (outgoing claims). Such incidents must be documented and the consequences thereof (costs and time) note.

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

B. Standard Contract Management Tools

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

the liability concept, warranty, liquidated


damages etc. are defined and specified in
this project policy.

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

make them available to their sales units and


Contract Managers via their Intranet.
We also recommend that Group-specific
tools and regulations be made accessible to
other Groups via a central Intranet platform.

52

C. Communication &
Training

D. Roll-Out & Feedback

Recommendation 10:

Recommendation 11:

Mandatory training in Contract


Law and Claim Management for
Sales & Marketing and Project
Management staff (technical/
commercial)

Continuation of the Siemens


Contract Management Community
established in October 2002

We recommend that staff in Sales &


Marketing and Project Management
undergo mandatory modules in order to
acquire further knowledge of Contract Law
and Claim Management. For this purpose,
the existing courses offered by LC (Learning
Campus) are being integrated into module 5
Qualification Programs for Project Management and further developed.
Group-specific training courses (e.g. business-oriented Claim Management) should
be devised and offered in cooperation with
LC and LS.

It is recommended that the existing Siemens


Contract Management Community be continued within the scope of a PM@Siemens
Community.

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

Project Controlling is a significant tool for


handling projects successfully. Ultimately,
the success of a project is measured in terms
of profits and customer satisfaction.
a Which key variables must be recorded in
the context of Project Controlling so as to
permit a reliable forecast of the profits at
the end of the project?
a How risks can be determined at the right
time and minimized by taking appropriate action?
a How can Project Controlling, which includes project reporting, be integrated
uniformly and systematically in the business processes of the Groups?

These questions were the key topics in the


Project Controlling module. Project Controlling is sufficiently regulated in all Groups.
The standard variables for Project Controlling related to the business management data and risk management are based on CF
specifications for all Groups according to US
GAAP (US Generally Accepted Accounting
Principles) and according to the KonTraG law
on risk management.
Other key variables not related to financial
aspects such as
a Technical controlling
a Milestone and project progress
controlling
a Change order and business opportunity
management
a Resource management
a Customer and employee satisfaction
are stipulated in a business-specific manner
in the individual Groups.
Various Good Practices related to these
areas were taken from all Groups and
analyzed by the evaluation team.

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

of communication between the hierarchic


levels concerned. However, Project Controlling can contribute to improving the results
of the project only if clearly defined overall
responsibility and authorities are assigned to
the Project Manager. As a result, integration
of projects in a project-driven organization
becomes a matter of course.

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.

The result-oriented processing of projects


requires current and up-to-date controlling
of business administration, technical and
contractual parameters.

The main tasks of Project Controlling are to


ensure that the project activities of all organizational units involved in the project are
clear, and that support is provided for commercial project processing.

The controlling process, in dialog with management, is supported by standardized


project meetings.

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

Best Practice recommendations:


Best Practice examples of standardized methods and processes from the
Siemens Groups are available on the
homepage.
TS info on
project reporting:

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:

http://intranet.icn.siemens.de/scb/pmn/ ( Project Controlling)

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

A project should be managed like a


company this guiding principle defined
by the Corporate Executive Committee has
a very decisive influence on the entire
PM@Siemens Initiative, particularly on Personnel Management.

But what does the term project


entrepreneurship mean? What tangible
results in this area are already available in
Siemens AG? And which of these solutions
can be recommended for implementation in
all Groups?
In order to answer these questions, the
panel of experts on Personnel Management
focused on three main areas:

Objective

Project Manager as entrepreneur

Responsibility

Empowerment

Delegating and
Assuming

Ensuring

Letter of Empowerment

Actions

Target Agreements

Adequate Placement

PM Training and Qualification

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.

2. Empowerment of the Project


Manager
Naturally, a Project Manager must have authority; in other words he/she must have sufficient experience for the project, be able to
lead the staff, and must not only have
enough self-confidence, but also be credible
and determined.
However, this alone is not enough. The organization must delegate very clear authorities to the Project Manager such that he/she
is actually able to exercise the responsibility
assumed for the project. The principle of our
project management culture must be recognized and practiced in the organization and

also be conveyed to our customers and


project partners. Experience has shown that
cooperation with line management is particularly important here. Partnership-based cooperation is an essential success factor in
projects.

3. Reward & Recognition


This area deals with recognizing the performance of the Project Manager (PM). There
are two ways of doing it:
a Recognition with long-term effect in the
form of a career in project management.
This is integrated in the management curriculum of Siemens AG and consequently
offers an alternative to a position in line
management.
a We recommend project incentive systems
or individual special payments related to
specific target agreements as a form of
recognition with short-term effect for successful projects. Both these forms enable
individual and targeted motivation and
give the Project Manager a share in the
success of the project.
The Personnel Management panel of experts analyzed and evaluated the solutions
applied in the Siemens Groups with regard
to these three main areas and made the following recommendations on the basis of
their research.

63

Recommendation 1:
Introduction of PM Career Model

Personnel development in project


management
Personnel development in project management is divided into two main levels: the
technical level without profit/loss responsibility and, based on this, the three management levels with profit/loss responsibility.

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-

ager by assuming the role of a technical


team leader.
The essence of the management levels is
based upon responsibility for results. The differentiation stems from the entrepreneurial
leadership of projects in the three categories,
A, B and C. For each of the three management levels, requirements profiles (see
graphics) have been drawn up as a qualification guide. These profiles contain a description with examples of the areas of responsibility involved in project management and
the relevant knowledge, experience and
skills expected in the Siemens competence
model.

Project categories

Qualification levels
with confirmation

Management of A projects,
large-scale projects,
general contractor projects

Project Director (PDir)


Cross-Group or
external certification

Management of B/C projects

Senior Project Manager (SPM)


Internal certification
at Group level
Project Manager (PM)
Internal certification
at Divisional level

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

Responsibility for results, customer, partner, finance and employee management,


business development in the ongoing project, proposal management, contact
management, planning, Project Controlling and reporting, risk management, project
completion, corporate networking, personal development

Knowledge

Methods/tools: Project, contract, claim and risk management (etc.)

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**

1 year responsible work


in projects,

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

Assertiveness motivation and inspiration organization and quality orientation


results orientation customer focus decision-making communication skills

* Group-specific adaptation necessary


** supporting qualification through the PM4 to PM1
modules provided by the PM@Siemens Academy

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

Internal certification at Siemens is proof of a


Project Managers competence and professionalism. A voluntary procedure, it takes
place at the end of the competence management and PM qualification process and
lies within the responsibility of individual
Siemens Groups.

signments which have been completed. The


target agreement (see recommendation 3)
and project outcome will be compared to
ensure continuous evidence of successful
leadership of A, B and C projects and hence
of maintaining a Project Managers quality
standard.

The aim of certification is to review project


management (PM) expertise on the basis of
the job profile of the appropriate level and allocation to the Project Manager, Senior
Project Manager and Project Director levels.

A PMs technical knowledge is verified by


way of a qualification certificate from the
PM@Siemens Academy, issued after the
Project Managers participation in the Learning Programs 41 or his/her attendance at
selected seminars from the curriculum, in
addition to a successful knowledge test
(optional). At the Project Practitioner (PP)
level, competence is established without
certification.

Required and existing skills of a Project


Manager as well as the PM levels Project
Manager, Senior Project Manager and
Project Director should be rated by a superior preferably within the staff dialogue
process. The SPM and PDir levels might be
additionally dealt with at a staff dialogue
round table as a best practice (as per the
EFA process).
Essentially, for an assessment of a Project
Managers competence and professionalism,
project experience defined in the requirements profile will be decisive. This project experience is shaped by the relevant project as-

The 5 modules of the staff dialogue are well


suited to bring in the previous PM experience, to receive feedback regarding personal performance and to discuss specific measures for the future PM career. Additional
documents may be helpful here, such as a
technical CV, a project list, project report etc.
The superior checks whether all conditions
are met for a certificate to be issued.

66

The PM@Siemens Certification


Process

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

Experts for the certification of


Project Directors
The certification process for Project Directors
is supported by a team of qualified Project Directors who act as cross-Group experts. They
provide advice to managers in the context of
certification. Their statements are included
in the staff dialogue/EFA process, if required.
The aim of involving these experts is to improve the quality and standardized nature of
the Project Director certification process
throughout Siemens. In addition, the experts promote an exchange of technical issues between the Groups and reinforce the
common project management culture. They
meet once or twice yearly to exchange
views and prepare procedures for Siemens
as a whole.
They must be qualified as follows:
a Broad project experience (PDir or superior
responsible for Project Managers)
Once the scope of the PMs experience and
responsibility, along with the skills relevant
for project management (in accordance with
the Siemens competence model) have been
confirmed at the appropriate level and it has
been verified that the Project Manager also
possesses the required technical knowledge,
the Siemens certificate is issued and presented to the Project Manager.
Group-specific solutions (such as assessment procedures or self-assessments for
staff dialogue/EFA preparation, or individual
determining of qualification requirements)
remain.

a Management experience
a Social skills
a Communicative competence
a Seniority

68

Project managers are Siemens


managers

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.

Once he/she takes over a project, the Project


Manager bears responsibility for leading the
project staff; he/she is authorized to make
decisions within the scope of competencies
allocated to him/her (see Letter of Empowerment). With the management of projects
comes recognition of services, through an
appropriate distinguished status in the organization as well as in the form of adequate income.

Division Manager

President

Subdiv. Manager

Vice President

Segment Manager

Director

Department
Manager

Senior Manager

Already performs valid


management functions

Defined via MPM@Siemens

Responsibility/qualification level

Management development roadmap


Management of
programs
(cross-process
general management)

Program
Director

Management of A
projects

Project
Director

Management of B/C
projects

Senior Project
Manager

Management of C
projects

Project
Manager

New additional structure of project


management functions

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

Specific target agreements are the basis for


a clear, target-oriented incentive ruling. The
panel of experts recommends that you take
the following criteria into account when defining the content of the target agreements
(project goals):

a Deadlines (milestones)

The target agreement forms part of the staff


dialogue (EFA). The project targets achieved
serve as a basis for a PMs further development (functional level, potential, salary,
SMR) and also for determining variable elements of salary. In addition, the experts
recommend the use of balanced scorecards
which should also be considered in the staff
dialogue (EFA).

a New orders and sales (for programs)

The recommended time scale is:

a Costs

a For programs: fiscal year basis (end-offiscal forecast)

a EBIT (Economic Value Added)

a Strategic goals (for programs)


a Quality targets
a Customer satisfaction

a For projects: completion of the project.


In A projects, control based on Percentage of Completion (PoC).

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

personal further development of the Project


Manager.
The individual special payment method
should be applied in such cases as it allows
you to remunerate the PM for his/her excellent results individually and on a performance basis. The amount of special remuneration must always be agreed with the
Groups Human Resources office.

71

Recommendation 5:
Project incentive system

Project incentive systems are one method of


recognizing the performance of Project Managers as entrepreneurs. The aim of giving
the Project Managers a share in the success
of their projects is to continuously improve
project results and to create a link between
performance and recognition of such performance (close to the time it is attained).

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.

In addition, incentive systems offer the


Project Managers an attractive way of improving their salaries.

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.

Key points of the project incentive system


a Motivation for ensuring project success can be achieved through:
Clear presentation of targets
Clearly defined measurement criteria (key financial figures in the project)
Immediate share in the success of the project on the basis of an agreement
a The content of the project incentive systems must clearly reflect the type of business,
hence the recommendation to devise Group-specific solutions
a PTD, SBS and TS can be contacted for Best Practice examples
a Key points of a project incentive system
On-top solution
Agreeing an incentive regulation at the beginning of a project
Assessment criteria: absolute improvement in staff dialogue (EFA) or absolute
improvement of sales margin
Taking business development and change requests into consideration
Only customer projects of the categories A, B and C (in systems business)
Target staff: project management, and, if required, subproject management,
without Senior Management (PTD); all staff involved in a project, but not from
other companies (SBS)
The basis for payment is a percentage of an improvement in the project results
exceeding those targets agreed at the beginning of the project
Amount of payment depends on number of hours of personal work,
with reduction for any quality deficits (SBS)
Fixing upper limits, for instance via percentage of annual salary
Accounting/payment time with milestone reference

72

Qualification

73

Qualification

74

75

Qualification

Training costs less than having to learn the


hard way in a project. Here at the Academy
we ensure that you are trained well.
We incorporate Best Practices into all our
training programs. We hope to see more of
you and your team members at the
Academy in the future.
Quote from the presentation given by
Prof. Krubasik at the PM@Siemens Initiative
forum on November 22, 2002.

PM@Siemens Academy

Steering Committee

In addition to the technological expertise of


the Groups, the professionalism of all those
involved in projects business is a significant
factor for our company's future and success.
In order to maintain and further improve the
qualifications available to Project Managers,
the PM@Siemens Academy was formed in
September 2001. The Academy, a virtual
organization, is an integral part of the

PM@Siemens Initiative and is controlled by


representatives of the Groups and the
Learning Campus. The Academys work is
described in Rules of internal Procedure.
As the Siemens know-how center for project
management qualification and coaching,
the PM@Siemens Academy has the task of
enhancing project management and of ensuring that project management standards
are put into practice throughout Siemens via
appropriate qualification programs. The
PM@Siemens Academy supports shorter
innovation cycles, ensures a standard level
of training quality throughout Siemens and
thus sharpens Siemens' competitive edge.

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 and requirements of


the PM@Siemens Academy

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

The PM Learning Programs


PM4 PM1

For the first time ever, comprehensive and


career-oriented project management qualifications are available throughout Siemens
in the form of the PM Learning Programs.
Each program is tailored precisely to match
the specific requirements of the individual
career stages (see Personnel Management)
in project management.
In the four PM Learning Programs which
build on one another in a uniform fashion,
theoretical and project oriented phases alternate over a period of 6 to 12 months. Project
management methods communication and
leadership skills are imparted in a closely intertwined manner to a group of participants
that remains the same for the above period.
A strong practical orientation and a continuous learning process are experienced by the
participants as they process realistic cases,
perform experimental exercises and role
plays (that are adequately adapted in terms

of complexity) and work with interactive


e-learning elements.
During the practical phases between the
modules (i.e. 6 to 8 weeks), the approaches
and methods learned can be applied directly
in the participants own project. In-process
actions such as tutoring and coaching, communities and workshops also contribute to
the absolutely vital establishment of networks as well as to the exchange and transfer of knowledge.
The PM Learning Programs are self-contained qualification programs and are harmonized with the Siemens Management
Learning Programs S5S1 in order to facilitate changeover between General Management and project oriented functions, also
supported by qualification activities. Therefore, entrepreneurship-oriented project management offers an attractive alternative to a
line or subject oriented career.

The PM Learning Programs PM4 PM1

PM4 Project Practitioner


Module 1

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

PM3 Project Manager


Module 1

Module 2

PM2 Senior Project Manager


Module 1

Module 2

PM1 Project Director


Module 1

Module 2

Further information can be viewed at


http://projectmanagement-academy.siemens.de/index_pm.htm

Module 7

78

PM@Siemens Curriculum

PM@Siemens Curriculum, required topics


Project
Practitioner

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 Best Practice Sharing

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 Team work in projects

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.

The qualification required for the relevant


career stage can be verified by means of a
knowledge test devised by the PM@Siemens
Academy. The Curriculum thus offers an
alternative to qualification in the PM Learning Programs.
Based on the Siemens competence model,
the qualification programs available are differentiated according to subject-related
knowledge, methods and technologies.
The PM@Siemens Curriculum is divided into
optional and mandatory topics; it can be
viewed and booked on the Intranet at
http://projectmanagement-academy.
siemens.com

79

Qualification Certificate

PM, SPM and PDir certification in accordance


with the career stages of the competence
model (as described in the Personnel Management Module) lies within the Groups
respective areas of responsibility.
The qualification certificate of the
PM@Siemens Academy is issued
a following participation in the
PM Learning Programs PM4 PM1 or
a following attendance at selected seminars of the Curriculum and passing of a
knowledge test (optional).

The content of the PM@Siemens Academy is


thus embedded between the qualification requirements and the certification activities of
the Groups.
Everything has been prepared. We have a
mandatory standard program. Make use of
the seminars!
Quote from the speech given by Dr. Jrgen
Schloss at the Project Manager Forum of
the PM@Siemens Initiative on November 22,
2002.

Qualification and certification process


Group

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

a the list of actions derived from project


and process assessments (see chapter
on PM Assessment)
a a self-assessment using the Competence
e-pilot (http://comptence-e-pilot.
sqt.siemens.de/epilot/pm/epilot.php) or
through Group-specific methods.

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

qualification leads (for one) to efficient and


strategic personal development. Secondly,
precisely that expertise which serves to advance an individual is both built on and imparted.

Recommendation 3:
Secure the quality requirements
for qualification activities

To maintain the required quality standards


of PM@Siemens Academy products (PM
Learning Programs and training programs of
the PM@Siemens Curriculum), the

PM@Siemens Academy performs regular


quality controls.
The Groups perform their duties within the
context of the Rules of Procedure of the
PM@Siemens Academy.

PM Portal

81

PM Portal

82

83

PM Portal

The Project Portal the web-based


workplace for all internal and external parties to the project

The PM Portal helps to improve cooperation


between all those internal and external
parties involved in a project, through the
worldwide and inter-organizational use of a
common project workplace.

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

Goals and Benefits

The aim of the PM Portal is to improve both


quality and productivity in project management within Siemens by enhancing clarity in
projects and reducing non-conformance
costs in project processing.

Improved clarity in project management


must be supported by uniform procedures
and tools, for all those involved in the
project including management. In doing so,
available IT procedures will be put to more
efficient use through integration into the
Project Portal and access will be facilitated
through uncomplicated operation without
additional registration procedures (single
sign-on).

Quality
increase

Specific alignment of the PM Portal to the


project process and to the needs of the
project team members should allow everyone access to precisely those functions and
that information that they need in order to
get on with current the job. As a result, cooperation in the project teams, efficiency in
the project processes and the quality of
project results will improve.
In cooperation with the PM Portal project,
Siemens CIO aims to advance the standardization of processes and tools by providing
an enterprise portal platform. This platform
will be available throughout Siemens and
will offer the appropriate portal services. At
the same time it aims to optimize the costs
for users by utilizing the effects of scale.

Optimization of
the project term
Reduction
of project costs

Uniform nature
of project data

Single
sign-on

85

Project progress
and the parties involved

August 2001 saw the kick-off of the PM


Portal project within the scope of the IT
Systems & Tools module of the PM@Siemens
Initiative. In cooperation with Siemens CIO,
the PG, PTD and TS Groups prepared coordinated specifications and thus created a common starting point. Furthermore, the I&S,
SV, SD, SBS, ICN and ICM Groups were incorporated in the process as a Review Board to
examine these specifications.

The PM Portal pilot, based on the mySAP


Enterprise Portal Software, Version 5.0, is
now complete. It is being tested by users. At
present the old version is being migrated to
the new version 6.0, in tandem with extension of the pilots functionalities. It is
planned to start the pilot phase for version
6.0 in late July. As of the end of October
2003, the PM Portal will serve as basis for all
newly started PTD projects.

At the start of implementation, PG and TS


changed over to join the Review Board while
PTD and CIO began with the development of
a pilot for PTD. This pilot was completed in
March 2003 and is now being used for communication within Siemens and for preparation of the roll-out within PTD. An additional
Group SBS has joined the PM Portal
project in May 2003.

For development and operation of the PM


Portal, Siemens CIO provides the infrastructure for both internal and external users
within the context of the Enterprise Portal
Services.

86

What does the


PM Portal offer?

Project management incl. cost management and reporting


PreProject
Bid
Contract
acquisition acquisition preparation negotiation

Sourcing &
Manufacturing

Detailed
planning

Shipment,
Erection,
Commissioning

AfterWarranty sales
service

The PM Portal in all phases


of the bid and order processing schedules

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.

Some examples for project roles and views


allocated to them:
a

Manager: The Management View allows


Business Responsibles a quick overview
of the current project situation on the
basis of scorecards and management
reports for their area of responsibility.

Project Manager: The Project Manager


View displays the project team members
and their roles, the project status and
information on current events in the
project at a glance.

Project Staff: The Process View


supports systematic processing of the
project on the basis of the standards
defined by PM@Siemens; its aim is to
contribute to improving the quality of
project processing.

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

PM tool for complex projects. This tool is


both multi-user and multi-project capable.
Its application as a Siemens-wide standard improves cross-Group communication.
Due to its efficiency and complexity, however, significant training in its use is required, in addition to support during introduction and professional system
administration.
This recommendation was documented by
CIO in CIO Circular No. 09 / 2002.

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

Next steps PM Portal

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 Steering Committee of the PM Portal


project should be extended to all Groups
involved and that

the Groups should use the standard solution as a basis for their own future project
portals.

The Groups will themselves decide as to


when they are going to embark on the project. However, until that time they will refrain from creating project portals independently.

Integration of SBS in the


PM Portal project
Pilot operation of the PM Portal
PTD End of July 2003
Roll-out for projects
PTD End of October 2003

Opera
tive
Quality
Mana
gemen

89

Operative
Quality Management

90

91

Operative Quality Management

The aim of Operative Quality Management


is to lay the foundations for trust-based,
effective cooperation with our customers,
partners and staff. Such cooperation must
be based on systematic, clear and proactive
approaches towards honoring contractually
agreed warranties and performances.
The pragmatic approach in the project, with
its focus on the requirements relevant for
quality, supports the Project Manager in
charge (as well as the project teams) in performance of their tasks.
Operative Quality Management (QM) is
an integral part of the PM@Siemens process and comprises the active planning and
lasting assurance of quality requirements
throughout the project, in an efficient and
target-oriented fashion and in all phases. As
an expert and partner, the Quality Manager
(PQM) assigned to the relevant project supports the Project Manager in effective plan-

ning, implementation and control of the


project-specific actions taken for quality control. These actions are of a predominantly
preventive effect.
QM has the additional goal of systematically
generating findings through analyzing and
drawing conclusions from past experience
strengths and improvement potential
which can be of benefit to future business.
All proposals and stipulations always relate
to the project phase and are independent of
the type of business.
Quality assurance is of special significance,
all the way from the planning phase right
through to contract finalization. Deficits and
errors committed in this phase can burden
the entire project substantially and can rarely be rectified with all resultant consequences for the customer and our company.

Operative Quality Management in projects


Basic definition and delimitation
The following basic definition illustrates the various types of business:

Project and system


business,
service business
Product business

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

a Ensuring that experience is ploughed


back in (Lessons Learned), through (for
example) project assessments, reviews,
audits, project status meetings

a Drawing up the quality plan including the


customer interface

a Controlling topics relevant for quality

a Planning and ensuring quality reporting


in the project

a Providing suitable quality methods

Authorities

a Measurable formulation of the results


(and progress) of product / service / process quality in projects, based on indicators

a Escalation beyond the level or scope of


the project, if required, in accordance
with Group-specific stipulations

a Planning and ensuring the quality of


project-specific supplies, internal / external

a The function of the PQM is anchored in


the core team

a Supporting Project Managers in the planning and ensuring of milestone results in


the project process
a Planning and ensuring product safety issues

a Access to all project documents

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

Job profile for the Project Quality Manager


Job Profile

Project Quality Manager (PQM)

Project Category

All categories

Areas of
responsibility

a Preparation of, adherence to and updating of the quality plan


a Collating of Lessons Learned
a Quality reporting and ensuring that derived actions are monitored
Specialized expertise: quality assurance, planning, test / trial / inspection planning, product
and technology expertise, fundamentals of project management, sector-specific processes

Expertise:
(Extracts)

Methods: fundamentals of contract management, quality management, methods, supplier


management, change management, assessments, audits, reviews, rhetoric, presentation,
standards and guidelines, problem solution / error prevention / error analysis methods

Experience

Professional experience in projects, production, assembly, commissioning or engineering:


Alternatively professional experience in operative quality management, quality assurance

Skills

Communication, analysis skills, initiative, customer orientation,


assertiveness, coaching and mentoring

A demand-oriented approach in accordance


with the process phases is recommended for building up this expertise.

A typical concept for in-project expansion of skills


Commissioning
Reliability /
Target Costing / LCC
Test and Trial Planning

QFD

FMEA / Risk Management

Contract Management + QAA

Technical Controlling

Review / Audit Techniques


Documentation
Project Management and Quality Planning

Project
history

QFD
QAA

New
business
acquisition

Project management
Bid

Project
planning

Quality Function Deployment


Quality Assurance Agreement

Engineering
Procurement

Production / Commissioning
Assembly

FMEA Failure Modes and Effects Analysis


LCC Life Cycle Costs

Warranty

AfterSales
Service

Laws / Decrees / Standards

Soft Skills

Supplier
Management

94

Recommendation 3:
Minimum requirements
for the quality plan
The quality plan contains:

The quality plan starts in the planning


phase and takes effect throughout the
project term. It comprises all the quality assurance steps and activities which must be
completed by the relevant project milestones.

a the actual quality actions necessary for


meeting project targets
a instructions as to how these are measured and assessed
a details of what results are to be achieved
by when, and who is responsible for getting things done
Application of the quality plan must be
regulated Group-specifically.

Operative Quality Management module


Quality plan: configuration, structure, approach

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

1) As a chapter of the PM guideline, if required


2) For individual projects a project-related
description / version may be issued,
if so requested by the customer
3) In accordance with stipulations
in the Group

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

This process thus acts as a form of preventive quality management by contributing to


avoidance of faults in subsequent projects.
The results of this approach serve to continuously improve business processes. They also
increase both the profitability of our projects
and customer satisfaction.
A Best Practice example for this systematic
approach can be viewed at Siemens
Business Services (SBS) on the Intranet,
at http://chestra.sbs.de

96

Kn o
w
Man ledge
agem
e nt

97

Knowledge
Management

98

99

Knowledge Management

The effective use of knowledge in everyday business, the propagation of existing


knowledge throughout the company in line
with relevant requirements and the generation of new knowledge as a basis for innovation are becoming increasingly important
factors in business success. Consequently,
the handling of our employees knowledge
and the generation of new knowledge in
our company must not be left to chance.
This applies, in particular, to projects business where success is decisively determined
by the knowledge and skills of those people
involved. A project plan must thus specify
the knowledge and experience required for
the relevant project. The challenge is to identify what knowledge is critical for success in
meeting project targets, to recognize which
of our employees possess this knowledge
and to know where documented knowledge
is available, if needed.
Frequently, experience that would help
solve a particular problem arising in a
project has already been acquired in a previous project. During any project, a multitude
of reports, evaluations, checklists and other
documents are generated which record valuable empirical data and thus represent
stored knowledge. The people solving the
problem thus establish know-how which
may well be lacking in another simultaneous
project, and could perhaps be put to profitable use there.
The aim of effective knowledge management is thus to create processes which enable and support an exchange of knowledge
across organizational and project frontiers.
The organization and holding of events for
Best Practice Sharing or the establishing of
expert or specialist networks with the same
knowledge interests (Knowledge Communities, to whom questions arising out of every-

day work can be addressed) provide two


ways of promoting knowledge exchange.
The team of experts in the Knowledge Management module deems the following goals
to be both appropriate and feasible:
a Establishing and support of crossorganizational and cross-project exchange of knowledge and experience in
project operations,
a Support of Best Practice Sharing in the
PM@Siemens Initiative, at the same time
working on recommendations and standards in order to achieve a sustained improvement in profitability,
a Support during the worldwide roll-out of
the PM@Siemens Initiative.
Within the scope of the activities of the
team of experts, two cross-Group communities (Contract Management and Claim Management) have already been established.
The following targeted recommendations
have been made:
A. A learning cycle in project business
B. Introduction of Knowledge Communities
regarding business-relevant topics
Some Siemens Groups have already gained
substantial experience in putting these recommendations into practice. Best Practice
examples from the I&S, ICM, ICN and SBS
Groups and the CIO Corporate Center demonstrate the benefits and opportunities comprised therein.

100

Recommendation A:
Learning cycle

Overview of
recommendations

Best Practice example


Siemens Business Services (SBS)

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

The aim of the Knowledge Management


(KM) Support Process within the context 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 core processes to include
Knowledge Management issues, such as
project debriefings (when projects are
completed or when project milestones
are reached)
a a Knowledge Management Support Process in the narrower sense, i.e. quality assurance of knowledge modules (Knowledge Assets), e.g. maintenance of the life
cycle of documents (quality in terms of
form and content, content life cycle).
While the core process expansion lies within
the process owners (e.g. Project Managers)
sphere of responsibility, responsibility for
the support process in a narrower sense is
assumed by new roles such as Knowledge
Manager, Knowledge Broker or Community
Broker.
Go to http://knowledge.sbs.de,
or for more information to
info@knowledgemotion.sbs.de

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

Standardized Project Management Process

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

Knowledge flows in a fast learning company

Use & creation of


knowledge,
collaboration

102

Recommendation A (1):
Learning cycle

Creation of project profiles and organization / holding of Lessons


Learned workshops, also preparation of project debriefing reports
The introduction of a learning cycle is divided into several steps. The first is creation of
a profile for a project. As illustrated by the
Siemens Business Services examples, these
project profiles serve as door signs to
projects which would not be known or evi-

Best Practice example


Siemens Business Services (SBS)

Project profile as the project door


sign

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.

and the reusable knowledge modules


(Knowledge Assets) are described. Consequently the document is important for the
entire project term and is updated periodicaly.

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.

Best Practice example


Siemens Business Services (SBS)

plate for the content-related structuring of


possible debriefing results, the debriefing report also contains advice and instructions as
to the methodology for reflecting on experience. If possible, the debriefing report, like
the project profile, should also be archived
such that it is generally accessible.

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)

SBS knowledgemotion Customer


Project Base and Knowledge Base
Knowledge in the possession of Siemens
Business Services is created, inter alia, in
projects. Knowledge Management at
Siemens Business Services starts early with a
systematic project processing mechanism,
so that this experience and these documents can be managed systematically.
All manner of projects that aim to offer a
service or to provide supplies to a named
customer are processed in the Customer
Project Base. This also includes the Proposal
and Delivery Projects of SBS Solution Business. Likewise the Customer Project Base also contains those projects required in the
product-related and operation-related business for bid submission and project control
in service orders. If documents to be recom-

implemented by our employees worldwide


into one easily accessible knowledge base.
Our ultimate goal is to ensure that all of our
people can access the Company's unequalled pool of knowledge.
To ensure accessibility, a uniform system in
the form of a taxonomy (attributes and content structure) and a globally available archive are absolutely vital. CIO Circular
05/2003 of March 17, 2003 specified the
standard platform for global exchange of
knowledge, administration of shared documents and cooperation in teams.
(https://cio.siemens.de/en/v4/Community/
circulars/ciocr/ciocr0305.pdf)

mended for reuse are identified in a project,


e.g. during debriefing upon project completion, these are then made accessible to all
employees of Siemens Business Services, via
the Knowledge Base. As this is generally
done in the national language, English attributes play an instrumental role here. Attributes also help enhance the retrievability
of a document through allocation of a document to communities, customer sectors,
portfolios etc. Furthermore, the quality and
validity of the documents is ensured via a
content life cycle process.
Go to http://knowledge.sbs.de,
or for more information to
info@knowledgemotion.sbs.de

104

Recommendation A (3):
Learning cycle

Ensuring that archived experience


reports/documents are put to use
After knowledge related to projects and derived from projects has been made available
via a Knowledge Base (inter alia), it is important to ensure that this knowledge is put to
subsequent practical use. Since the wheel is
often re-invented as a result of ignorance or

Best Practice example


Siemens Business Services (SBS)

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

an inability to use the tool technology, it is


important that employees be qualified in
handling the tool and rendered capable of
dealing with the cultural challenges. This includes the establishing of Knowledge Management process steps in the Process House
of the individual Business Segments.

Base and the bearing of responsibility for


worldwide roll-out and launch. The roll-out
and the launch involve a large share of
Change Management via communication
(e.g. multiplying of success stories), and also qualifications in terms of tool technology
(web-based training, train-the-trainer etc.).
Go to http://knowledge.sbs.de,
or for more information to
info@knowledgemotion.sbs.de

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.

Group. If a member of staff is under deadline pressure, faces an acute problem or


needs help fast, he / she may use the urgent
request process to contact colleagues in any
department or location worldwide and ask
them to help him / her find a solution.
A precondition is that he / she is unable to
access this information already, via e.g. the
Knowledge Base.

Any employee may formulate and send an


urgent request, just like any employee may
answer one. To provide better tracking of urgent requests, notifications may be set
which e.g. remind an interested party by
e-mail that a new urgent request has been
added. An urgent request is generally
answered within one day. In the event that
no answer has been obtained after 48 hours,
the urgent request is escalated and the support unit of the Global Knowledge Center attempts to procure an answer to it.
Go to http://sharenet.siemens.com,
http://knowledge.sbs.de,
or for more information to
info@knowledgemotion.sbs.de

106

Recommendation A (5):
Learning cycle

Evaluation and consolidation of Lessons Learned. Evaluation of Best


Practices and reuse in qualification
and new projects
Frequently, experience that would be of
help in a new project has already been
gained in a previous project. During any
project, a multitude of reports, evaluations,
checklists and other documents is created,
which often record valuable empirical data
Best Practice example
Siemens Business Services (SBS)

Knowledgemotion: Content life


cycle process
The content life cycle process within the support process of knowledgemotion describes
the formal and content-related validation or
evaluation of reusable knowledge components (Knowledge Assets or Reusables).
Following a check of both form and content,

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.

a document is classified in the Knowledge


Base as a Knowledge Asset. Now users can
rely on the high quality of the document
and utilize it, following minor checking and
adaptation, within the scope of the documents validity (life cycle).
Go to http://knowledge.sbs.de,
or for more information to
info@knowledgemotion.sbs.de

107

Best Practice example


Industrial Solutions & Services (I&S)

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).

The Guideline may be viewed at


http://intranet.is.siemens.de/is_engine.
shtml?id=115914
Uniform reporting in the non conformance
process ensures that divergences and their
causes are made visible. In the future, corrective action will also be taken in a targetoriented fashion by clearly defined responsible members of staff.

NCM Non Conformance Management

Recording of
identified
divergences

Analysis of causes
and classification
of divergences
Divergence
documented

Definition
of actions

Divergence analysis completed

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.

In the current business environment, the


Knowledge Communities who focus on
specific topics and act across organizational
borders represent an appropriate approach towards solving existing problems.
They can make a valuable contribution to
optimizing the way we manage knowledge.

The advantages for our company


a Deepening of existing knowledge and
generation of new knowledge this reinforces core competence and hence our
company's success
a A sharper knowledge edge, and avoidance of occupational blindness
through a cross-country and crosslocation exchange of experience and
knowledge
a Identification and exploitation of synergies dual carriageways can thus be
identified and duplicated work reduced.
In addition, activities in the company (e.g.
in relation to new strategies, technologies or further training) can be more easily coordinated
a A speedier and more flexible response to
the companys environment through a
high level of clarity and personal networking independent of the organization
a Identification of potential for improvement and innovation through the joint
acquisition of external knowledge and
tracing of trends
a Standardization of terminology and processes through cross-organizational
coordination among experts.

109

Advantages for the individual


employee
a Quick access to relevant and high-quality
information through an exchange of experience and information, and a permanently high level of clarity
a Efficient solutions to everyday problems
through being able to contact precisely
those colleagues who are actually able to
help
a Better personal sense of achievement
by passing on Good Practices to other
members of the Community, an employee can see how his/her own good ideas
bear even more fruit.
a The employees ability to decide himself/
herself is strengthened through individual control of the learning processes typical of the Communities. The employee is
no longer sent away for training, but deBest Practice example
Industrial Solutions & Services (I&S)

Sector Communities Chemical


and Pharmaceutical
To improve and stabilize market exploitation
in the chemical and pharmaceutical sectors
and to improve the quality of results in the
light of the market situation and technology,
the CoP Chemicals and Pharmaceuticals community was established. Here, those responsible from all Regions in Germany now meet
regularly at all-day workshops which take
place alternately at the various locations.
This promoting of personal contact has
brought about a considerable improvement
in supra-regional cooperation. Roles, tasks
and goals have been defined jointly.
The topics are agreed by the representatives
with the participation of all units active in
the sectors concerned. The proposals and
goals of sector support are elaborated in the
prepared workshops. Furthermore, the Community also increasingly exchanges information via electronic media. For example, the

cides himself/herself to partake in continuous learning


a Even better prospects for the future,
based on cooperation with experts from
the same or similar areas. The employee
develops even more specialist know-how
and a network of company-wide personal
relationships.
An overview of all communities existing in
our company (and of available support in
the forming and running of such communities) can be obtained at
http://community-support.siemens.com

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

Best Practice example


Corporate Information & Operations (CIO)
Knowledge strategy process

The Siemens CIBIT Knowledge


Strategy Process (KSP)
The KSP is the strategic instrument used by
the Business Owner and his / her management team. This process is integrated in the
business strategy and reviewed regularly.
The KM action plan resulting from this pro-

which as a resource and product


increasingly determines business success,
should be handled. It shows which knowledge areas impact on which areas of business, what deficits exist in the individual
knowledge areas (in relation to a comprehensive knowledge model) and what response
would be adequate from the management's
viewpoint. Issues for communities are derived from this knowledge strategy.
cess serves as a guideline for the work of the
Knowledge Management team. The prioritized knowledge topics that are relevant for
business also bring about a prioritization of
the communities. The knowledge strategy
process comprises 6 steps which are illustrated in the diagram below.
More information may be viewed at:
https://cio.siemens.com/en/v4/topics/epk/
km/ksm/index.html

Business and ambitions (focus specific topic like Process, Org., Product ...)

Knowledge area

Knowledge Portfolio

Knowledge
State Guide

d Key performance indicators

future impact

current impact

diffusion
codification

Proficiences
and K
Stakeholders

codification

proficiency

diffusion

Improvement
Actions
Bus. perspective

Integration

Action Plan & Solution Strategy

of actions

enriched by Best Practice in


Competence/Knowledge Management

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

a Phase: members and concept


You identify and inform potential community members, search for similar activities
relating to your topic and incorporate
their key persons; you build your preliminary considerations into a community
concept.
a Phase: preparation
You secure financing and management
support for the planned community activities, set up an IT platform and organize
the kick-off meeting.
Detailed information can be obtained at
https://cio.siemens.com/en/v4/topics/epk/
km/cs/howto/start/index.html

SBS knowledgemotion Knowledge Base


grants the CoCs sufficient leeway to support
their communication and also the communities there. The tasks of a community within
the scope of the Content Life Cycle Process
are also performed via this community work
area. Furthermore, the Intranet presentation
of a community is provided via a Content
Management interface between Livelink
and the Intranet.
For info about CoC communities go to
http://solutions.sbs.de/coc/index.html
or http://knowledge.sbs.de.
More information may be obtained from
info@knowledgemotion.sbs.de

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

Best Practice example


Corporate Information & Operations (CIO)

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

Best Practice example


Siemens Business Services (SBS)

Community Request Form


At Siemens Business Services we differentiate between two types of community: topdown communities as are created during
the establishing of the Centers of Competence (SOL CoC), and bottom-up communities established by special request or on the
initiative of existing networks. A Community
Request Form is available for the latter. This
form asks for important details such as

of both the business and personal benefits


of the community. While the goals of a community's activities and its results must be demanding by nature, they should still be realistic. Quick wins (i.e. speedy successes
arising from cooperation) have a highly motivating effect.

then involves a detailed analysis of the


knowledge area(s), taking the three knowledge dimensions, i.e. proficiency ,
diffusion and codification into consideration. Within the context of the last activity,
goals and actions are derived from the requirements identified during the analysis
and then planned for the community.

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)

a Knowledge Management Support Process


in the narrower sense, i.e. quality assurance in knowledge modules (Knowledge
Assets), e.g. maintenance of the life cycle
of documents (quality in terms of form
and content, content life cycle).
While the core process expansion lies within
the process owners (e.g. Project Managers)
sphere of responsibility, responsibility for
the support process in a narrower sense is
assumed by new roles such as Knowledge
Manager, Knowledge Broker or Community
Broker.

Best Practice example


Information Communication Mobile
ICM Networks

For information about IMS see All about IMS:

Siemens Base Station:


Project portals for various
releasess

IMS ICM homepage:


https://ims.icn.siemens.de/html/index_icm.
html

IMS (Information Management System) has


proved very useful as a collaboration platform in the processing of projects involving
various locations in different countries. The
IMS has been applied successfully since the
launch of Release 6.0, Siemens Base Station.
The clear filing structure was also put to use
in subsequent releases. In terms of solely
searching and navigating for relevant information, approximately Euro 600,000 are
saved per annum in projects of this size.

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-

tration of the activities and implementation


status. On this basis, reporting takes place
within the Organizational Units, the Regions
and at the regular Steering Committee Meetings. The existing version was updated to
take the new and revised recommendations
into account.

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

On the basis of this implementation process,


the contents of PM@Siemens should be discussed and introduced in Organizational
Units, according to an approach agreed
between the PM Coordinators.
Various parties are involved in the implementation process; their tasks, competence
and responsibility as well as the relevant
process steps have been described.

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

Group Executive Management/


Regional Management
a Responsibility for implementation of
PM@Siemens in the Group/RC/OC
a Communication of significance and objectives for the Group
a Target agreement with management and
departments for implementation
a Appointment and empowerment of the
Project Manager for implementation
project
a Monitoring (Scorecard) of implementation progress in the Divisions/Regions
a Reporting in the Steering Committee
PM@Siemens

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

a Provision of support to GEM, e.g. in order


to determine the specific implementation
actions
a Support for the Project Manager in the
implementation project, e.g. controlling,
Scorecard
a Best Practice exchange within the scope
of Group Coordinator meetings for further development of 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

a Definition of specific need for action,


Fig. 4
actual analysis (kick-off, workshop) for
each module
elaborating actions for each module
determining responsibilities and
deadlines
a Determining the implementation status,
Fig. 6 + 7
a Monitoring activities in the PM
Scorecards, Fig. 8
a Analysis of project business, Fig. 10

a Experience in improvement programs

a Coaching support at all levels

a Communication skills and powers of


persuasion

a Alignment of implementation to the


improvement of project results

Relevant process steps and success


factors

Project teams are set up in the


Organizational Units in order to implement
and coordinate the PM@Siemens activities
systematically.

The following stages have proved essential


success factors in the introduction and implementation of PM@Siemens:
a Commitment on the part of management
a Definition of roles for all involved in the
implementation process
a Well-developed communication process,
targeted addressing
a Setup of a project team (Project Manager,
PM driver, experts), Fig. 3

121

Fig. 3: Tasks and responsibilities (form)


Group ..........

Group / Division / Subdivision / Business Segment


Group
Div. 1
Div. 2
Div. ...
Div. ...

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

Fig. 4: Group-specific implementation of recommendations


(form)
Group / Division / Subdivision / Business Segment: ........
PM@Siemens
Modules

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

have been determined and their contents described:

Fig. 5: Definition of the implementation status


(Group/Division/Subdivision/Business Segment/Region)
Level of implementation 1 decision in favor of implementation
There is a concrete goal, e.g. a target specified by the GEM/Division/Subdivision/Business
Segment/Region. There is an objective with a gauged effect.
Level of implementation 2 the PM@Siemens recommendation has been analyzed and
quantified for the Group/Division/Subdivision/Business Segment/Region
The actions for implementing the PM@Siemens recommendations are clear and have been described in an
action sheet; the potential has been quantified; those responsible for the actions have been appointed and
the next steps for level of implementation 3 (including deadlines) have been specified.
Level of implementation 3 action has been elaborated
There is a concrete action plan with deadlines, responsible parties and milestones to which all those
involved have given their commitment. The potentials have been evaluated in detail by means of a
quantity or value estimate.
Level of implementation 4 action has been taken
The action plan has been completed in full; all those affected have been informed or instructed
accordingly and implementation was subjected to a random check.
No implementation
The PM@Siemens recommendation will not be implemented in the Group. A verifiable
reason has been supplied by the Group/Division/Subdivision/Business Segment/Region.

124

Fig. 6: Implementation status Module 15


(form) 1/2
PM@Siemens
Module

Group/Division/Subdivision/Business Segment/Region

PM@Siemens Recommendations

....

Introduction of project process with adopted milestone system (level 2)


Introduction of mandatory results of milestones
Processes, Roles
Introduction of project roles
Introduction of process phases (level 3)
Independent "Contract Management" function
Involvement of full-time Contract Manager for projects of highest project/risk class
Documented bid/no bid procedure/approval for bid preparation
Implementation of bid approval procedure with project and risk classes which are uniform throughout the Group
Bid approval by the Review Board, in consultation with GEM
Involvement of full-time Contract Manager for processing in highest project/risk class
Contract
management
Mandatory observance of unacceptable regulations (LS Legal Manual)
Mandatory specification of a Group Policy for project business
Intensive use of available standards and tools
Mandatory training in Contract Law and Claim Management for staff in Sales & Marketing/Project Processing
Continuation of Siemens Contract Management Community established in October 2002
Implementation of PM@Siemens recommendations as a defined Group project
Project-driven organization
Uniform project controlling process from bid/no bid decision through to project end
Project Controlling
Implementation of mandatory milestones in project process
Regular project meetings driven by management
PM career model V2.0
Letter of Empowerment
Target agreement
Personnel
Taking project goals into consideration in yearly bonus/special payments
management
Project incentive system
Certification of PM, SPM, PDir, additional knowledge test for PM expertise
Certification of PDir, participation of experts from another Siemens Group
Re-certification (recommended after 5 years)
Determining the need for qualifications
Qualification
Taking action for qualifications
Ensure qualification requirements are in line with qualification actions

Implementation decided

Being planned

Being implemented

Regularly implemented

No impl.

....

....

....

125

Fig. 7: Implementation status Module 612


(form) 2/2

PM@Siemens
Module

Group/Division/Subdivision/Business Segment/Region

PM@Siemens Recommendations

....

MS Project, Primavera, SAP PS


PM Portal
Participation in further development and introduction of PM Portal as standard solution
Describe function and tasks of operative Quality Manager in the project
Qualify Operative Quality Manager to perform his/her tasks in the project
Operative
Prepare standard quality plans
Quality
Milestone reviews, escalation
Management
Design systematic project finalization
Generate process improvement
Implementation of a Learning Cycle in project process
Knowledge
Management
Introduction of Communities concerning business-relevant topics
Establishing the implementation process
Processes,
Determining implementation status and stipulating necessary activities
Transfer and
Creation of PM Scorecard
Implementation
Analysis of project business
+
Implementation of PMA*
PM Assessment
CT SE process assessment
Early and continuous integration of purchasing function
Target cost agreement for purchases and supplies on basis of complete and up-to-date project requirements
Project
Adherence to defined procurement process incl. Change Management
Procurement
Consistent safeguarding of customer contract contents in supplier contracts
Project-specific supplier rating for cost reduction and quality improvement
Minimum standards for small projects
Contract Management
Career model
Small Projects
Qualification
PM@Siemens Reporting
PM assessment

Implementation decided

Being planned

Being implemented

Regularly implemented

No impl.

....

....

....

126

Recommendation 3:
Creation of PM Scorecard

An essential element in putting the


PM@Siemens recommendations into practice is the direct link to project improvement.
The trend in the quality of orders received
for new projects, along with the improved
margins attainable in projects, serve as a

yardstick for effective implementation of


elaborated recommendations. This project
Scorecard of the Groups/Regions involved is
subjected to quarterly controlling by the
Steering Committee.

Fig. 8: PM@Siemens Scorecard


Level to which recommendations
have been implemented

Project improvement

Trend in quality of new orders


F Y:

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%

% sales margin / % EBIT

-5%
Quar ter 1

Quar ter 2

Q uar ter 3

Quar ter4

Development of sales margin/EBIT delta


Processes,
Transfer,
Implementation

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

An analysis of projects business shows the


changes that have occurred in a project during
the course of its processing as a function of
new order costing in a particular fiscal year.
The project data show the improvement potential which could yet be exploited within

the scope of processing, along with the


number of qualified Project Managers. The
definition of key figures should assist in providing a uniform illustration.

Fig. 9: Definition of key values in project analysis


1. Total sales
Proportion projects business (FY)
Total project volume
Number of projects

.......
.......
.......
.......

2. Avaluation of projects business


.........
Number of projects OI calc. < FC
B corresponds to EBIT/sales margin .........
(OI calc. FC)
.........
B proportionate project volume
Number of projects FC < 0
.........
B corresponds to EBIT/sales margin .........
(FC value)
B proportionate project volume

OI calc. Order Income Calculation


FC
Forecast

.........

Total sales

Total sales worldwide of the Group/Region


(planned value for the current FY)

Proportion
projects business

Proportion of projects business as a planned


figure, worldwide of the Group/Region

Total project volume

Total project orders in hand as at qualifying


date actual figures worldwide
(new orders + change orders)

Number of projects

Number of projects in relation to total project


volume

Number of projects
OI calc. < FC

Number of projects with deteriorating


results (in relation to total number
of projects)

Corresponds to EBIT/
sales margin
OI calc.-FC

Sales margin/EBIT OI calc.


Sales margin/EBIT FC (= negative value)

Proportionate
project volume

Total project orders in hand for


projects with OI calc. < FC

Number of projects
FC < 0
Corresponds to EBIT/
sales margin

Number of projects
EBIT/Sales margin of FC
(= negative value)

Proportionate
project volume

Total project orders in hand


for projects with FC < 0

128

Fig. 10 Analysis of projects business


100

1. Total sales
Proportion of projects business (FY)
Total project volume
Number of projects

80

EBIT/sales margin OI calc. (in %)

60

40

20

0
-100

-80

-60

-40

-20

20

40

60

80

100

-20

-40

-60

2. Evaluation of projects business


Number of projects OI calc. < FC
B corresponds to EBIT/sales margin
(OI calc. FC)
B proportionate project volume
Number of projects FC < 0
B corresponds to EBIT/sales margin
(FC value)
B proportionate project volume

.......
.......
.......
.......
.......
.......
.......
.......
.......
.......

3. No. of project managers


New order received before 10/2001
New order received after 10/2001
New order received after 10/2002

-80

-100

EBIT/sales margin FC (in %)

B Project Manager (overall)


.......
B Project Director
.......
B Senior Project Manager
.......
B Project Manager
.......
B Externally Certified Project Manager .......

Certified
.......
.......
.......
.......
.......

A s PM
se
ssm

en
t

129

PM
Assessment

130

131

PM Assessment

The success of a project, and consequently


of a project management system, is reflected at the latest in the results achieved at the
end of the project.

organization, are we making progress on the


road to a project-driven organization? These
are the questions that can be analyzed with
PM Assessments.

But what are the factors that jeopardize the


project results, have a negative influence on
the desired processes or process steps and
can even unjustifiably tarnish the image of
the Project Manager? Very often, these factors are hidden and interlinked, and sometimes they are deliberately not shown.

What contents and topics must this assessment deal with?

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

The first illustration provides an overview of


the already-mentioned PM framework. It is a
summary of the PM modules (i.e. the topics
of the PM), of the project categories (i.e. a
suitable focus on the projects), and of the
project types (i.e. the business content and
nature).

PM framework including different project types and categories


In elaborating the common PM framework it were the differences between projects
and not between the Groups that were taken into consideration

PM Topics

Project Categories

Elements in PM Framework

a Processes, Roles

a A project a B project
a C project

a Allocation of Best Practices

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

Project Types (examples)


a Major EPC Contracts
a Software Development
a System Integration
a Components Project
a Business Transformation
a Logistics Projects
a Development
Projects

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.

2. Assessing the project management relevant processes of the


organizations
This assessment corresponds to an analysis
of what progress the organization has made
in terms of maintaining a successful and appropriate project management system in its
particular business context. This comprises
identification, standardization and continuous optimization of project processes and offers the best possible guarantee that orders
won will be processed successfully. Both the
customer and the organization can materialize the expected benefits.

3. Assessing the success of the


modules of PM@Siemens and of
the Initiative
In the modules of the PM framework, teams
of experts have selected or specified Best
Practices from the store of knowledge of the
Groups involved in the PM@Siemens Initiative, i.e. I&S, ICM, ICN, PG, PL, PTD, SBS, TS,
SBT and SV, and have defined Siemens
Standards, wherever reasonable. These results are incorporated appropriately in the
Groups' implementation programs and
made accessible to the Project Managers
and their teams. The assessments show the
level at which these results have been incorporated in the projects and organizations,
evaluate their efficiency and identify additional subject areas, where applicable.
As shown by the goals, the objectives of the
PM@Siemens Initiative are
a to improve concrete process steps from
the new-business acquisition stage right
up to delivery to the customer, i.e. not only project handling
a to reinforce the position (role) and improve the qualifications of the Project
Manager
a to work towards achieving a positive culture for project business
a and, very importantly, to improve the results of the project.
The benefit or efficiency of these (additional) main points must be checked with the
user.

133

Assessment Procedure

Fundamental
characteristics

Two harmonized procedures/tools are recommended for these assessments:


a PMA+, the easy procedure for identifying

PMA+ focuses on the individual project and


checks whether the relevant PM system is appropriate. The results are then used to supplement or correct the existing project documents in terms of their suitability for the
further course of the project, and to find
ways of ensuring that the project produces
good GWB.

the need for action at project level and in


business processes linked to the project
a CT SEs Process Assessment, the procedure for comprehensively analyzing improvement potential in both process and
organization, in order to ensure project
management expertise in the medium
and long term.
Both procedures provide a standardized analysis and rating of the project management
skills comprised in projects and organizations. The procedure ultimately selected depends on the focus of assessment.
With their emphasis on identifying need for
action in an ongoing project and ensuring
sustained project management expertise in
the organization, both assessment procedures complement each other ideally.
The characteristics, fundamentals and special strengths of the procedures are detailed
further on, making it easier to decide
Which assessment tool for what purpose?.

Of particular advantage is its uncomplicated


nature; a typical run takes half a day at the
most. It can be put to work repeatedly during the course of a project, e.g. in order to
make sure that important project milestones
are reached.
PMA+ can be used by the Project Manager/
team without the need for any assistance.
However, an external assessor should be consulted in order to avoid incorrect interpretation of contents or to rule out subjective errors of judgement.
The CT SE Assessment focuses on sustained
project management expertise of the organization assessed. Detailed proposals for action and their implementation step by step
by means of work packages provide the basis for improving process quality and rectifying inherent weaknesses.

134

The results thus benefit all the projects of an


organization alike.
Its particular advantage lies in a holistic assessment of all process management aspects with project management ultimately
in mind. Two CT SE assessors act as moderators; those involved in the assessment need
not make any special preparations. During
the assessment, the defined processes (work
instructions, guidelines, sample forms ...)
are reviewed for their suitability for reliable

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+

a Focus on the project


a Ensuring that the analyzed
project ultimately succeeds
a Review of valid standards
a Ease of use, can be
re-applied as often as
needed
(e.g. quarterly)
a Self-assessment possible
external moderation
still recommended

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

Maturity Model). This is used worldwide as a


de facto standard for rating process quality.
The maturity levels define characteristic behavioral patterns for project handling, all the
way from individually characterized procedures through to the continuous optimization of defined processes, controlled in a targeted fashion. A higher level of process
maturity means that the risk potential inherent in project and business content decreases, while performance quality improves proportionately.

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

a Applied in own organization; several


projects represent the typical process
a The assessor team gathers information in
interviews and from check documents
a The assessors check concurrence
between the defined process and
the process actually applied in
practice
a Comprehensive test report
a A high points score is achieved
through compliance with the
CMM requirements
a A low points score indicates
a need for action in the
organization

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

Assessment for improvements

a Concentration on improvement
potentials

a Alignment to CMM (Capability Maturity Model)


method of SEI: comparative and repeated analysis

a Assessment according to specified


guidelines and derived practice

a Systematic analysis of strengths/weaknesses:


objective information on actual status

a Form of cooperation

a Drawing up a list of actions:


clear steps for exploiting improvement potential

a Management in various facilitator roles


a Individual confidential statements/
results

a Classification and pooling of actions: improvements


go ahead in stages

Subtopics to be observed

Assessment steps

a Project management functions


h Planning/controlling
h Supplier management
h Configuration and change management

a Kick-off/final meetings with all involved

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

a Interviews with management, project


officials and staff (collectively and
individually)
a Consolidation of information based on
standard questions
a Intensive consultation prior to disclosure
of result
a Minimal effort demanded from
departments being audited

138

Experience with PM
Assessments

PMA pilot applications:

I&S has been using the predecessor of


PMA+ for project reviews worldwide for
about the last five years. Within the scope of
PM@Siemens, this tool was further developed to form PMA+, to also take specific requirements of the Groups into consideration.

a popular in I&S IS for support of the


Project Management Implementation
Program

The sophisticated method and process involved in the CT SE Assessment have


proved themselves in more than 250 applications. The suitability of this procedure in
terms of project management has held good
in approx. 10 applications in various Groups.

a all Groups confirm high acceptance by


users

a 5 years of experience to draw on


a the results of assessments performed
so far
h clearly show where improvements
in the projects are necessary
h indicate where the Best Practice
standard is brought to bear in the
relevant organization

For the past 10 years, the targeted


focus of the CT Assessment
approach has been on:
a 250 applications in just about all Business
Units throughout our company: maturity
level in the development process (software/hardware systems) with key topics
of project management, product management, services and personnel management
a 10 special assessments performed for customer projects so far
a review of the efficiency of suppliers and
partner companies

139

Illustration of the results of PMA+

This diagram depicts a screenshot of project


assessment results using the PMA+ tool.
The spider chart provides an overview of the
strengths and weaknesses of the project in
relation to the applied project management
system. The results attained and their structure offer a reliable basis for a detailed
discussion of individual aspects with the
Project Manager/team.

Project profiles in PMA+ at a glance

Running PMA+ a number of times in a


project at reasonable intervals, e.g. for the
preparation of project status meetings with
the Business Manager, serves to clarify further development of the PM system in the
project.
Actions aimed at improving results can be
taken immediately. Actions with a long-term
effect can be measured and monitored for
their efficiency throughout the course of
project realization.

140

Illustration of results in the


CT SE Process Assessment

Detailed and classifiable profiles supplemented by an


overall maturity level lead to an improvement in the result

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:

Project Organization, Project responsibilities


Task Planning
Methods for estimating costs/scheduling
Project Controlling
Managements Role in Project Controlling
Risk Management
Claim Management
doc. procedure

practice

0%

Maturity Level determined with


the results for each of the subtopics

20% 40% 60% 80% 100%

Siemens
Level

5
4,5
4
3,5
3
2,5
2
1,5
1

Industrial
Standard
Process

fulfilled
potential

The key result of the assessment comprises


action proposals and the documentation of
focal points of action. The graphic illustration of the assessment concurs with the five
stages of the CMM assessment basis. Maturity levels are shown for the individual project
management topics and overall process control.

Documented
Process

Practice

1.50 (example)

The illustration shows comparisons between


the basis for defining goals i.e. what is documented and specified and their actual implementation.
In order to compare the quality of management of individual projects (PMA+ result) to
the system actually applied in an organization (CT SE Assessment result), the CT SE
Assessment summarizes the relevant results in an illustration analogous to that of
PMA+, i.e. in the form of a spider chart (being worked on at present).

Pr
Pr oje
oc ct
ur
em
en

Project
Procurement

141

142

143

Project Procurement

Increasing global competition demands that


all potential be exploited in order to safeguard our market position and secure a sustained competitive edge. This is particularly
true of project and system business. In addition, the most varied of internal and external influential factors call for a strategic
alignment of the Purchasing function.

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 Development Process


Process steps
Preacquisition

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

Stringent customer-specific requirements, a


low level of recurrence, an ever increasing
share of external value added and the potential resulting from this are all impeding procurement in projects and system business
and requires structured and systematic procurement processes.
The Project Procurement module describes
how the Purchasing function is integrated into projects business. The recommendations
for action (listed hereinafter) encompass all
the essential topics pertaining to successful
exploitation of the potential offered by the
purchase of materials and services. These
topics represent a structural framework.

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

Actions recommended for


PM@Siemens

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.

Potential savings resulting from the involvement of Purchasing


at an early stage
Impact on life cycle costs
New

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.

An actual-to-target comparison similar to


the explanations given in the Project Controlling module is recommended, in order to
provide continuous monitoring.

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:

ture authorization etc.). Orders other than


those processed through the IT systems intended for this purpose (generally SAP R/3)
are not permissible.

Compliance to a group-wide defined Procurement Process with


regulation of responsibilities including Change Management
(utilising available IT-Systems)
Procurement activities must be handled
within the scope of a stipulated process
which clearly regulates and communicates
responsibilities (e.g. approval strategy, signa-

Necessary measures must be taken in the


procurement process to ensure that
payments are only made after
reliable confirmation of
performance/
provision.

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).

The aim of Claim Management is to pass on


additional own expenditure (which has not
been calculated) to the other contracting
party (supplier) in full, wherever possible,
and to avert unjustified claims. Primarily,
Claim Management aims to prevent a deterioration in the calculated project results arising from demands made by suppliers.
The assertion and negotiation of any project
claims concerning suppliers is handled by
Project Purchasing, in coordination with the
Claim Manager and Project Managers,
where applicable (analogous to the descriptions in the Contract Management module).

Transposition of customer contract contents onto supplier contracts


(back-to-back)
Project Specifications
Contract/Claim Management
Risk Management
Change Management

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.

method which is uniform throughout the


Groups. Primarily, the results will form the
foundation for future awards. Secondly, suppliers who receive the appropriate rating will
acquire preferred status.
This is preferable for new projects, in order
to ensure that the best suppliers are engaged in each sector for specific scopes of
delivery. Long-term win-win situations can
be brought about by consistently identifying
and concentrating on the best suppliers
within the framework of supplier target
agreements and supplier development activities.

148

149

Small
Projects

ts
all jec
Sm Pro

150

151

Introduction to and Definition of Small Projects

Recommendations for Small


Projects
The previous modules of PM@Siemens are
primarily tailored to suit large-scale projects.
This is particularly evident in the recommended work results, as well as in the
recommendations concerning the qualifications program, career path and PM
Assessments.
In addition to larger-scale projects, however,
the success of our overall business also depends on Small Projects in several Siemens
Groups. Frequently, the profits from such
projects are even better.
A working party was therefore formed to
develop recommendations specifically for
Small Projects and to set minimum standards for these. These recommendations are
based on the PM@Siemens Program. The
working party comprises representatives
from the ICN, I&S, SBS, SBT and SD Groups.
We have not proceeded on the basis that
new work results and procedures have to be
elaborated for Small Projects. Instead, a
selection from the already existing range of
methods has sufficed.
Before we can decide when to proceed in
accordance with the compact approach for
Small Projects, we must first define the features of a Small Project.

Definition of a Small Project


Small Projects are by nature distinct from
larger-scale projects, from projects involving
higher risks and from pure supply transactions (which are not classified as project business). Hereinafter, a project is always
deemed to have come about if a customerspecific solution is offered, in contrast to
plain supply business which does not involve any customized modifications (catalog
products & standard services).
Each project must be classified. Groupspecific adaptations and detailed structures
are required in order to cover the specific
features of the relevant business. Examples
from I&S, SBS, SBT and SD are attached.
Consequently, Small Projects are comprised
of the relevant lowest classification level(s)
which do not constitute pure supply business.
Small Projects are handled increasingly in a
process-oriented fashion, applying smallscale standards and specifications (e.g. preprinted forms and templates). The organizational leeway is restricted by standards.

152

Small Projects are comprised of the relevant lowest classification


level(s) which do not constitute mere supply business

Delimitation in accordance with


Group-specific project classification

Classification criteria, e.g. risk,


volume, complexity

Lowest classification class(es) are


Small Projects
(e.g. SBS I, IS C, SD C, SBT D, E, F)

Customer-specific solution

Not merely catalog products


or standard services

Projects
Delimitation
to top

Small Projects
Delimitation
to bottom

Supply business

153

Recommendations and Structure


Small Projects
Definition of Small Projects
Minimum standards
1

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

The standard reference process described in


Module 1 is also applied for Small Projects,
in all of its phases and with the defined milestones. The illustration shown below once
again represents the process and the milestones associated with the individual process phases. In principle, there is no need to
elaborate any procedures or work results
that differ from those applicable to major
projects, but the necessary steps and work
results are formulated instead in different
depth and applying a distinct method.

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.

A minimum standard was therefore defined


on the basis of the project process (Module
1); it is required for each project. This minimum standard defines the milestones for

Minimum standards for Small Projects


Phases
1

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

Minimum standards were defined for


each phase, in terms of:
a documents
a milestones
a responsibilities

155

The following work results


must be achieved in each phase:
Phase

Work results

End
milestone

Description

Responsible

Preacquisition

a What does the customer want?


E.g. inquiry, invitation to tender, Statement of Work
a Likelihood of a project: L
a Documentation of go/no go (optional)

PM010
Go/no go
decision

Decision on whether
bid preparation or
project initiation is to
be considered

Sales&
Marketing

Process
Acquisition

a Categorization of the project, e.g. AD, escalation level


IIV+ => determining of the Level of Authority project
definition: e.g. project datasheet, project definition
a Risk estimate

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

a Review/update, new creation or archiving (where


applicable) of work results generated in preliminary
phases (in particular in phase 3) on basis of
negotiations with customer

PM070
Project
won/lost

Customers decision
to accept/refuse bid

Sales&Marketing

Handover

a Handover checklist on work results previously


achieved and information in order to check
completeness and quality
a Appointment of Project Coordinator,
e.g. also on basis of a Project Manager agreement

PM080
Start project
execution

Project responsibility
defined

Project Coordinator
Involving: Sales&Marketing

Detailed planning (time, resources, scope of


supplies, expenditure)
Organization
Accounting framework
Claim and CR strategy

PM100 Order
entry clarified
PM200 Release
of detailed
planning

Project implementation
may begin, all conditions
fulfilled

Project Coordinator

List of open points and known deficits


Proof of performed services, work results
and products, e.g. delivery dockets;
provision of forms for acceptance

PM300 Release
for shipment
PM400 Material
and resources
on site;
PM500 End of
erection
PM600 End of
commissioning

From the viewpoint of


project implementation,
all those aspects of the
scope of the contract
which are relevant for
acceptance have been
submitted or delivered to
the customer, or have
been otherwise rendered

Project Coordinator

Acceptance report
List of open points and known deficits
Lessons Learned (optional)
Ex-post costing (optional)
Invoicing

PM650 Provisional Acceptance


Certificate (PAC)
PM700 Final
Acceptance
Certificate (FAC)

Customers acceptance
performed, final invoice
can be issued, start of final
project works

Project Coordinator

Completion,
project
conclusion

Completion of works on the


Project
project, transfer of responsiCoordibility to operation or mainte- nator
nance teams, where applicable

a
Project
Opening a
and Clari- a
fication, a
Detailed
Planning
Sourcing a
& Manu- a
facturing,
Shipment,
Erection,
Commissioning

Bid on basis of standard contracts


Standard terms and conditions
Costing
Solution concept
Initial project plan
Updated risk estimate

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

The support provided by professional


Contract Management is likewise absolutely
essential for Small Projects. However, due to
the low budget, Contract Management is
usually not organized project-specifically.
The support offered by Contract Management must be regulated Group-specifically,
and thus varies from Group to Group. For example, the Contract Management function
may be fulfilled by the Project Manager,
through a central function (if required) or
handled directly by Legal Services. It is also
possible to assign the task of providing support (for other Project Coordinators) to an
experienced Project Manager, in addition to
his/her regular duties.
However, a special feature of Small Projects
is that Contract Management is activated at
the initiation of the Project Coordinator and
does not govern the contract-relevant contents of the project independently.

Contract Management should provide support for project work on the following points:
a

contractual issues during processing


(e.g. assessing contract clauses or specifying further procedure, assessing written
communication with customers or subcontractors, etc.)

Claim Management in relation to the


customer and subcontractors (scope of
claims, procedure in critical situations,
etc.)

assessment of draft contracts with


customers and subcontractors

training programs for Project Coordinators, on topics relevant for the contract

Further features of the recommendation on


Contract Management for Small Projects
have yet to be developed.

157

Recommendation 3:
Career model

In addition to PM careers in large-scale


projects, there are likewise attractive opportunities for Coordinators in Small Projects.

This allows them to embark on the further


career model in accordance with
PM@Siemens.

The qualifications for Project Coordinators


are based on professional experience in
project processing and on basic training (see
Recommendation 4). Here, experience as a
Coordinator for Small Projects along with
basic training for Small Projects (see Qualification Program) corresponds, in essence,
to the requirements of training level PM4.

If the project structure of a Group does not


allow for further progress in project management, i.e. there is only a minor project
structure, it must be examined whether another career path in a line function is reasonable. Furthermore, it might be possible
to move to another Group with a different
project structure. A career path in accordance with PM@Siemens is then available
there.

Employees with this qualification are then


fully responsible (time, contents, costs) for
Small Projects, i.e. in particular they are responsible for the project budget.

Career Model PM@Siemens


Program
Director
Further career
in line
management

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

It is possible to embark on the


PM@Siemens career model via professional experience in Small Projects
and basic qualifications.

158

Recommendation 4:
Qualification Program

To ensure that project management in Small


Projects is of equally high quality, all Project
Coordinators must undergo training, where
they are taught the Siemens standards and
trained to deal with the relevant local
specifics.
The large number of Coordinators for
Small Projects, along with the decentralized
nature of processing worldwide, calls for onsite training, which takes place in the local
language.
Since the Coordinators in Small Projects are
increasingly performing tasks of a more
general nature and may also be running
several projects in parallel, the qualification
program must offer comprehensive, yet
compact, process training.
Therefore, the following recommendations
have been developed for the qualification
program:
a

Joint training of all those involved in


Small Projects (i.e. Sales & Marketing, Bid
Coordinators, commercial staff, quality

Qualified
Selected experienced
Project Managers
from the Groups

In order to ensure proximity to actual


work processes, adaptation for Groups
(or even parts thereof) is essential on the
basis of a minimum standard.

Training should be provided in a compact


fashion, in the language customary for
the business and on site, by an experienced Project Manager.

In order to introduce the Siemens


Standard worldwide, a train-the-trainer
concept should serve as a basis, i.e. all
the trainers undergo the same training
program and then incorporate the
Siemens Standards in the local training
programs.

The Group and Divisional Coordinators


are responsible for initiation and successful completion of training programs.

a Group-specifically and on the basis of the

approaches, procedures and directives


applicable in the Group; adaptation for Groups
or even parts thereof necessary
a Compact training, in the language customary

Local
training
Project Coordinator
Sales&Marketing
Proposal Manager
Project Teams

a Joint training of all those involved in the project

Siemens Academy

Trainthe-trainerphase

managers and Project Coordinators) must


be provided Group-specifically and on the
basis of the approaches, procedures and
directives applicable for that Group.

for the business, on site and by an experienced


Project Manager
a Train-the-trainer concept
a Responsibility borne by Group Coordinators

and Divisional Presidents

A compact training program for


the whole team on site in the
language customary for the
business is ideally effective and
ensures a high level of quality.

159

Recommendation 5:

Recommendation 6:

PM@Siemens Reporting

PM Assessments

Four standard reports are used in


PM@Siemens:

Self Assessment (optional):


Due to the large number of projects which
have to be handled by a Project Manager in
parallel and on a project basis, the PM
Assessments are not deemed practical in every scenario. Self-assessments can either be applied for all processed projects (e.g. quarterly
or every six months) or in a more streamlined
form for each project. The self-assessments
for Small Projects are optional. Their use is decided on and governed individually by the
Groups.

Project Meetings (mandatory)


In addition to the self-assessments, projects
must be regularly selected at random (e.g.
monthly) and discussed with the line superior
(e.g. DU manager).

shotgun representation of individual


projects

implementation status of modules and


recommendations

Scorecard with new order quality and


slippage (on a project basis)

tasks and responsibilities

The two formats shotgun and new order


quality/slippage must be adapted for Small
Projects, as the large number of Small Projects (close to 80,000 for SBT alone) renders
separate evaluation impossible. In addition,
delivery and projects business are frequently
mixed in the reporting structure. Access to
and consolidation of local data that is accumulated worldwide and frequently appears
in country-specific formats is not yet entirely
practicable.

The aim is to improve the quality of project


management. For this purpose, the project
progress is briefly described and solutions to
problems, along with scope for optimization,
are defined. In addition a check is performed
as to whether the required minimum standards have been adhered to. With respect to
the defined milestones, it is also verified
whether the work results are available and
documented adequately. In the event of deviations to standards, the reasons are reviewed
and discussed.

We recommend an adapted representation


of Small Projects; however, this has yet to be
devised.

As a result of the random selection and given


the large number of projects, every project
has the same chance of being selected. This
supports the idea of harmonization and implementation of Best Practices as defined by
PM@Siemens.
a

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