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Planning and Communicating
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As people, we like to think that we understand one another, and that we remember things well. But all kinds of practical experience backed by all kinds of psychological studies show that two people coming out of a meeting where everyone thought they had agreed on everything are likely to have very di erent pictures of what was agreed on. This wastes a lot of time and money.
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PART ONE Hello, Project Management
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Just last week I was managing a small project where we were delivering eight speci c improvements to a software program. Seven of them were speci ed clearly, and that work took about twelve hours. We did not have exact information about the other item, although it was on the list. That one item alone added four hours of work to the project. That is, it increased time and cost by 25%. We chose not to bill the client for the extra time, but the mistake left everyone feeling a fair bit less happy with the results of the project. This small example shows the importance of planning in writing and communicating those plans clearly. But why does such a small mistake take so much time to x It is the result of the nature of project work, as explained in the 1:10:100 rule.
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THE 1:10:100 RULE THE IMPORTANCE OF PLANNING
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Everything we make goes through three broad stages of development: conception and planning; building and testing; delivery and use. In the rst stage, we are working with ideas, and our milestone is a written plan. In the second stage, we are building, and the result is the physical system, tested and working. In the third stage, the system is put into place, and then maintained for the length of its useful life. There is a bottom-line fact about these stages. It is always least expensive to plan well, and resolve all problems in the conception and planning stage. It costs 10 times as much to resolve the same problem in the building and testing stage, and 100 times as much to resolve the problem when the system is in production. This is the 1:10:100 rule.
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WOWS AND WHOOPSES
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Measure Twice, Cut Once
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An architect looked at a blueprint and realized he had made a mistake. He had placed a support pillar in the wrong location. He knew that he had to redraw the blueprint, which would take an hour. He could not decide whether to charge his client for the time it would take to x his own mistake. At $500 per hour (back in the 1960s), this was not a small choice. He decided to nd out what it would cost the client if he did not x the mistake. He called a building contractor and described the problem. He asked: Suppose I hadn t found the mistake until the building was half-way nished. What would it take to x it then The contractor replied that it would be a big mess. You cannot move a support pillar once the foundation had been laid. The architect would have
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CHAPTER 2 Tools to Use Over and Over
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to design a set of trusses and joists to support the roof, and it would take the construction team more than a day, about ten hours of work for the whole team, and $5,000 to x the problem. This is the 1:10 ratio of the 1:10:100 rule. It takes ten times as much time and money to x the building during construction as it would take to x the blueprint before construction. This got the architect more curious. What would happen if the problem was not discovered until the building was built He called a maintenance engineer, who told him that the rst symptom would be that the roof would sag and leak. To x it, they would have to close the building for 100 hours (4 days). Between lost rents and repair costs, the total bill would be $50,000. So, one hour has become 100 hours, and for each dollar of expense in the planning stage, it will take $100 to x the problem in the working building or production system.
The 1:10:100 rule is about the process of developing anything. It applies to every project in every industry, from construction to software development to advertising. So, we need to organize our work in a way that takes advantage of the 1:10:100 rule. The more good work we do early, the better. The 1:10:100 rule is close to a universal law. It has been tested and found to be true across many industries. It even applies in software development, where we are building a computer program with software code, rather than creating a physical item such as a building. In Software Inspection Gilb and Graham devote an entire chapter to demonstrating the value of a software development method that focuses on extensive planning even before writing code. Over and over they demonstrate that a process that catches errors in the planning stage reduces project cost by a factor of ten. In addition, they have one case where a company wrote 80 software programs, 40 of them using traditional methods and 40 using software inspection. In production, the maintenance cost of the 40 programs written using project management best practices was 1/100 of the maintenance cost of the other 40 applications. The 1:10:100 rule is also the way things work in nature. You hear it in the aphorisms an ounce of prevention is worth a pound of cure and measure twice, cut once. These teach us to put planning and prevention ahead of action, making use of the 1:10:100 rule. Our goal in project management is to de ne what we are doing and then plan well so as to prevent problems. It may mean a slower, more costly start, but it ensures project success and lower total cost.
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