Teradyne Corporation: The Jaguar Project.

MSTM- 6034 Project Management in the Offshore, Health, Fisheries and Engineering Technolog En!ironments Mod"le #$ Project Management F"ndamentals Gino, F. & Pisano, G., 2006: Teradyne Teradyne Corporation: The Jaguar  Project.

S"%mitted % Tona Somerton Tuesday, Tuesday, October 15, 15 , 2013

0

Ta%le of &ontents

Overview …………………….………….………………………...……….. 2 Problem Statement ……………………….……………………...………… 4 lternatives ………………………………….………………...…………... 4 lternative nalysis ………………….…….……………………………… 5 !ourse o" ction ……………………………..…………………………….. # $e"erences …………………..…………………..…………………………. 10

1

O!er!ie' &om(an$  Teradyne !or%oration

Fo"nded$ 1#&0 by le' ()rbelo"" and

Em(loees$ Over &000 )"siness$  Production o" e/ui%ment "or

 *ic+ (eol". !lassmates "rom -T Mar*et$ orld)s larest su%%lier,

testin semiconductors

orldwide+

Sales$ 1. billion in 2004.

e("tation$ nown "or reliability, test

)"siness nits$

s%eed and tecnical %er"ormance &"lt"re$ 7nineerin, driven by

1 Semiconductor test,

 %er"ormance. !asual dress, cubicle o""ice

2 ssembly Test, 3 6roadband Test,

s%aces, encouraed individual initiative.

4 !onnection Systems, 5 (ianostic

8on ours is te norm, recruitment 9

Solutions. retention were no issue. O(erating. (roject (rocesses in (lace (rior to the /ag"ar Project$ ntroduced in te 1##0)s: Total ;uality -anaement core team? o" leaders "rom eac subsystem team as well as te  %roram manaer evin Ciebel and te %ro@ect lead O)6rien was "ormed. Tis team met montly in %erson 9 wee+ly via telecon"erence to ensure a%%ro%riate levels o" interation across all sites.



Dormali=ed %ro@ect manaement tools were used durin te Aauar %ro@ect. Tese tools includedE or+ brea+down structure, 3:%oint estimation, critical %at analysis 9 earned value analysis.



Te team was "le'ible and res%onded to delays by reallocatin resources, never canin te "i'ed customer:si% date. Fardware remained aead o" scedule usin tese metrics.



Some teams did not rely on te %ro@ect manaement tools metrics, so"tware)s metrics indicated issues wit com%letin %lanned tas+s but, tey were >in denial? and constantly communicated tat tey could catc u%.



n Se%tember o" 2003 Teradyne received word tat one o" te larest semiconductor com%anies in te world, l%aTec was about to commit to a com%etitors system.



Teradyne)s system was not sceduled to be ready "or evaluation until Aune, ten monts later. Teradyne convinced l%aTec to wait "or tem to "inis teir  %roduct, to ive tem a cance to bid on te business. l%aTec ad one conditionE tey wanted te system "or evaluation by -arc 30, 2004.



dditional resources were committed to te So"tware team. s te deadline closed in te so"tware team si"ted its e""ort to "i'in bus, avin to ma+e concessions on oriinally %lanned "eatures.



On -arc 30t, 2004, as %romised te "irst com%lete system was si%%ed "or evaluation. ll o" te ardware met s%eci"ications but, so"tware did not incor%orate all "eatures initially re/uested by te customer. Te so"tware was "unctional but, was also laden wit bus. Teardyne s%ent te ne't si' monts 3

u%radin te system "or l%aTec. Teir wor+ %aid o"", in Se%tember 2004 l%aTec selected te Teradyne system. 

Tere was a cost to tis victory, te remainder o" te %ro@ect: includin develo%ment o" "eatures "or oter customers: was delayed. So"tware teams were consumed wit "i'in bus and "ell "urter beind scedule by si' monts.



n te >a"ter:action? review. ssues wit te a%%lication o" Pro@ect manaement tools are identi"ied and tere are lessons to be learned "or "uture %ro@ect manaement at Teradyne. red "las? were essentially inored by some teams, te so"tware team es%ecially. Tis scedulin issue meant te team ad to ma+e concessions to meet deadlines. Oriinal customer re/uested "eatures were cut to save time canin te sco%e o" te %ro@ect. 7m%loyee enaement and buy:in was low. Te tools were new and some em%loyees "elt tey were more cumbersome tan use"ul. Te "eelin at Teradyne was tat, sometimes te tools ot in te way. Jaluable time was s%ent deci%erin tool metrics and weter tey were reliable rater tan res%ondin to tem.  riid %redetermined scedule became less meanin"ul over time. Tey wor+ed to stay on scedule but, missed tat tey were ma+in concessions and canin te %ro@ect deliverables. Te metrics tat were inored by manaement reardin te so"tware delays may ave been avoided i" additional resources were added as soon as tey noticed te timeline sli%%in. en te scedule was even "urter sortened tis %ut enormous %ressure on so"tware team and te end result was a %roduct tat was not as s%eci"ied initially. t was te tools tat allowed te com%any to res%ond to l%aTec and teir use made tem con"ident tey could meet te milestones. Fowever, te @auar %ro@ect inored /uality, and cost control wen %laced under %ressure to meet te deadlines, one o" te identi"ied disadvantaes o" te !P.

&o"rse of ction  lot o" lessons were learned "rom te Aauar %ro@ect. Dirst, %ro@ect manaement



tools are valuable to success"ul %ro@ects oweverE te %eo%le usin tese tools must understand te sini"icance o" te tools and ow to utili=e tem to teir advantae. Trainin sta"" to understand and e""ectively use te %ro@ect manaement tools would ave seen a res%onse to metrics, and may ave %ossibly avoided te so"tware catastro%e. Second, tools tat are bein used must be su%%orted and encouraed by manaement. Favin some teams use te tools, and oters not, breeds con"usion and inability to s%ea+ te same lanuae wen re%ortin oals and %roress. Te ability to be "le'ible and to mitiate ris+ is essential to %ro@ect manaement. ll o" te tools used in te @auar %ro@ect were ood, valuable tools but teir e""ective a%%lication was lac+in due to ine""ective communication trouout te %ro@ect. >Tools ma+e tins better i" %eo%le usin tem acce%t and understand wat tey are "or and ow tey wor+?