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Agenda

ON-Time Enterprise Program Management Information System Jerry Cripe Corporate Program Management Controller 602.244.7547. Agenda. Background Objective Approach Solution Summary. ON Semiconductor. We make the semiconductors that turn ON technology and connect you to your world!.

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Agenda

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  1. ON-Time EnterpriseProgram ManagementInformation SystemJerry CripeCorporate Program Management Controller602.244.7547

  2. Agenda • Background • Objective • Approach • Solution • Summary

  3. ON Semiconductor We make the semiconductors that turn ON technology and connect you to your world!

  4. Background Program Management in the News: • Nokia market cap($265B) fell $52.1B in a few hours on July 28, 2000 as the CEO announced missing 2 telephone projects for this year and lower revenues per Financial Times. • Intel’s lost critical-path planning ability per CEO in Electronic • News, August 28, 2000 which attributed to falling behind AMD • in areas of microprocessor development. Intel market cap fell from • a high of $445B to $295B on September 26, 2000

  5. Management by the Web Contrasting Views of the Corporation Business Week August 28, 2000 CHARACTERISTIC 20TH CENTURY 21ST CENTURY ORGANIZATION The Pyramid The Web FOCUS internal External STYLE Structured Flexible SOURCE OF STRENGTH Stability Change STRUCTURE Self-sufficiency Interdependencies RESOURCES Atoms-physical assets Bits-Information OPERATIONS Vertical integration Virtual integration PRODUCTS Mass production Mass customization REACH Domestic Global FINANCIALS Quarterly Real-time STRATEGY Top-down Bottom-up LEADERSHIP Dogmatic Inspirational WORKERS Employees Employees & free agents JOB EXPECTATIONS Security Personal growth MOTIVATION To compete To build IMPROVEMENTS Incremental Revolutionary QUALITY Affordable best No Compromise

  6. Program Management Benchmarking

  7. Companies improve product development performance in stages Each stage represents a breakthrough, not continuous improvement PMG Study Pittiglio Rabin Todd & McGrath Stage 4 Stage 3 Cross-Enterprise Excellence PortfolioExcellence Stage 2 Core processes linked across internal and external business partners for maximum leverage ProjectExcellence Stage 1 Processes aligned to achieveplatform leverage, portfolio balance and excellence in project selection and execution Functional Excellence Stage 0 Functions aligned for effective execution from concept to market Informal Management Excellence within functions, but not across functions Informal practices based on individual experience

  8. PMG studies have shown that companies with better practices achieve better results Dominant Practices Intended Practices 2000 • Mature (Stage 2b) participants—18% of the total—have implemented full cross-functionality at the project level and achieved better results • Revenue growth • Time-to-market (TTM) • Time-to-profitability (TTP) • Wasted development spending • Commercialization success • Pipeline throughput per $MM spent Note: Based on Product Development Benchmarking Study by Performance Management Group

  9. Project Lifecycle Customer Requirement Work Plan Product or Service Plan Upgrade Restart Cycle Evaluate Framework Document Plan Work Close Out Investment Decision Manage Product or Service Technical Requirement Closeout Project Portfolio Management

  10. ON Semiconductor Program Management Model

  11. Why Program Management Model? • Organizational Process to Create: • A decision process infrastructure to support a PM Matrix Organization • Create a complete project/program life cycle process • Resolution of technical/organizational issues • Empowering program/project managers and their teams • An effective Project Portfolio Management system • Process to create Projects of optimized value to the Corporation

  12. ON-Time Program Management Model PSG and Project Manager Process Customer Commitment PSG Program Steering Group-Staff Roles: Technical Alignment Strategic alignment Portfolio Management Decision making Remove Obstacles approve gates Cross Functional Authority Gates Phase 0 Opportunity Selection Phase 2 Planning Phase 3 Execution Phase 4 Closure Phase 1 Definition Project Manager leads development process of empowered cross-functional team through project life cycle-produces Key Results

  13. Objective • Enterprise Management Goals • Predictive Management • Performance Management • Real World Interface • Resource Management • Decision Management

  14. Expectation Setting • Project/Program Managers-Schedule & Tracking, Accountability • Collaboration, Communication and Resource Management • PSG-decision meetings • Follow PMI-Project Life Cycle process • Program register • project reviews-defined by PSG’s • management by exception-give me the bad news! • Active Project Portfolio Management

  15. Baldrige Criteria for ON Semiconductor Program Methodology Model • Leadership-Corporate PM protocol across ON Semiconductor • Strategic Planning-PSG Criteria-linked to Strategic Plan, Portfolio metrics • Customer and Market focus-PSG, Register, Portfolio scorecard • Information and Analysis- Standard Methodology, planning, risk analysis, • scheduling, tracking, Central Depository • Human Resources focus-user group, master’s certificate training available • Process Management-Central Depository, PSG’s, Controller team • Business Results-Project Register and Project Portfolio Scorecard

  16. Forced Date: 3 month’s to replace legacy Motorola System called Dante which held 250 projects globally!

  17. Approach ON-Time PMIS (Program Management Information System)

  18. PMIS Implementation Stages • Overview of PM Practices/Software • Assessing the Organization/Vendors • Creation of PMIS with Preferred Vendor • Pilot • Deployment • Sustaining the Momentum

  19. Software Criteria • Useability • Capability • Performance • Interoperability • Manageability • Acquisition Cost • Implementation Cost • Maintenance Cost • Time to Benefit

  20. ON-Time Enterprise Program Management Projectized organizational model to move at e-speed CEO COO Intranet Web Enabled Executive Decision Making Portfolio Management Program Controller Executive Council PM Knowledge Management Digital Dashboards & EC EC Performance Reports Vice Pres/. Director Vice Pres/. Director Project Controllers Management Review PSG Senior Management ON-Time PMIS Projects Functional Managers Functional Managers Resource Management Suppliers (SCM) Customers (CRM) Partnerships Matrix,i2, ON-Dex Project Managers Project Managers Internet Team Leaders • Address Key Challenges: • Accountability for schedules, budgets & deliverables • Resource allocation & bottlenecks • Performance measurement against baseline & expectations • Risk, change, quality & issues management controls • How to measure ROI benefits & value • Workplace Productivity and Continuous Improvement projects PSG = Program Steering Group SCM = Supply Chain Management CRM = Customer Relationship Management

  21. Solution ON-Time PMIS System Architecture

  22. ON-Time PMIS Digital Dashboard

  23. ON-Time PMIS Framework Document

  24. Summary Strategic Awareness • Hypercompetition • Strategic Intelligence • Accelerate Strategic Decision-Making Enterprise Project Portfolio Management & Scenario Planning Continuous Strategy will become the norm

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