THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: June 26, 1997 11:30 AM Thursday; Rod Welch

Lunch with Bill DeHart re PMI article; PG&E and Sprint project.

1...Summary/Objective
2...PG&E's Project with Sprint Behind Schedule, Poor Communications
3...Bill is concerned about the project not meeting completion date
4...reflects the problem identified by Dr. Ray Levitt at the PMI meeting

ACTION ITEMS.................. Click here to comment!

1...Bill will draft a memo setting out the the project environment and

CONTACTS 
0201 - PG&E Grid Customer Services        415 973 1014 fax 8426
020101 - Mr. Bill DeHart, PMP
020102 - Project Manager =415 973 1014 pger 510 472 2288; Project Management

SUBJECTS
Board Meetings
Asilomar Redux Give Me Men to Match My
Asilomar, PMI NCC
Evaluation, Review, Lessons

0806 -    ..
0807 - Summary/Objective
0808 -
080801 - Followed up work at ref SDS 10 line 39, ref SDS 9 line 55, r
080802 - line 43, ref SDS 3 line 427.
080803 -
080804 - Delivered a Communication Metrics report, ref DRP 2 line 13, to Bill
080805 - at PG&E.
080806 -
080807 - Bill has not read the article on Asilomar, but plans to do so soon.
080808 -
080809 - He recalled there are disagreements among PMI NCC Board members about
080810 - doing an audit for the 1996 Asilomar event.  Paul Nelson proposes the
080811 - audit should be performed to reconcile a shortfall in the project
080812 - budget of $1000.  Bill indicated Paul feels this is needed to clear
080813 - any concern about management of Asilomar. Bill recalled that Ahmet and
080814 - others feel that spending $3K to look for $1K is not good management.
080815 -
080816 -
080817 -
080818 -
0809 -

SUBJECTS
Bill's Assignment, 960815
Demonstration for New Users
Construction, Sales discussions, PG&E, Sprint, Bechtel
Intelligence, Military
Command and Control of the Record
Proactive Management uses Communication
Congestion More Managers Cause Noise
Everybody's Talking, Nobody's Listening, No
Complex Scenario Example Communication

2412 -
241201 - PG&E's Project with Sprint Behind Schedule, Poor Communications
241202 -
241203 - Bill advised that he is working directly with Sprint's Project Manager
241204 - who is a lawyer.  He speaks with this person on a daily basis.
241205 -
241206 - Sprint's project has 300 sites and each site has about $200,000 in
241207 - cost, so the overall project for Sprint is about $60M.  He estimates
241208 - PG&E's portion is only about $6M.  My sense today from the discussion
241209 - with Bill is that PG&E's work is being performed adequately, because
241210 - they are mainly the landlord for each project site.
241211 -
241212 -     [See effort to develop a spreadsheet calculating the level of
241213 -     effort for management as a function of subjects, ref SDS 14 line
241214 -     59.]
241215 - ..
241216 - Bill is concerned about the project not meeting completion date
241217 - objectives due to a very complex business environment. If that happens
241218 - PG&E could be blamed and this could jepardise future opportunities for
241219 - PG&E to get more business from Sprint.
241220 -
241221 -      [See report on 970801 that Sprint intends to fire Bechtel, ref
241222 -      SDS 15 line 64.]
241223 -
241224 -      [See report on 970809 that communication improved, Bechtel will
241225 -      finish project, ref SDS 16 line 68.]
241226 -
241227 - He described the business environment of Sprint having hired Bechtel
241228 - as project manager.  Bechtel has hired separate A/E and Construction
241229 - Manager firms.  Each of the 300 sites has a dedicated project manager
241230 - and lower tier staff.  This organization greatly escalates the flow of
241231 - communication to prioritize, coordinate and perform the work.  It may
241232 - be an example of "Too many cooks spoil the broth."  With so many
241233 - managers, communication becomes a process of "guess and gossip."  It
241234 - reflects the problem identified by Dr. Ray Levitt at the PMI meeting
241235 - on 960912, ref SDS 1 line 176.  The more people involved in a
241236 - communication chain, the greater liklihood of error, delay and extra
241237 - cost.
241238 -
241239 -      [See article on entropy in information base causing cost and
241240 -      schedule failure, ref SDS 13 line 279.]
241241 -
241242 - PG&E must deal with each project separately, and this increases the
241243 - chances of error through miss-communication.  So there is an overall
241244 - project risk, and PG&E has a portion of that risk.
241245 -
241246 - He advised concern has become apparent by Sprint that the project will
241247 - not meet Sprint's completion objectives.  Communication between Sprint
241248 - and Bechtel reflect this concern, and Bechtel's objective to avoid
241249 - liability.  Bill seemed to indicate that Bechtel's concern about
241250 - completion is evident in communications throughout the project
241251 - organization.
241252 -
241253 - We considered the idea of Bill drafting a memo from PG&E to his key
241254 - contact at Sprint to lay out the concern and suggest a Communication
241255 - Metrics program to improve project performance.  Bill said the project
241256 - schedule is weak, so that needs to be strengthened and more rigorous
241257 - daily scheduling is needed using SDS to avoid the problems of a
241258 - complex business environment.
241259 -
241260 - Bill will draft a memo setting out the the project environment and
241261 - factors that impact Sprint's success and how that affects PG&E.  I
241262 - will draft a double spaced memo he can then edit and share with his
241263 - boss, so PG&E can submit it to Sprint.  This will show PG&E is taking
241264 - the initiative to assist its customer.  We can propose a meeting with
241265 - Sprint's Project Manager to consider ideas to address the overall
241266 - issue.  Actually, I am inclined to seek a pre-memo submission meeting
241267 - with Sprint to hear their thinking, so the memo can be crafted to
241268 - avoid controversy and show how to accomplish Sprint's objectives.
241269 -
241270 -     [Submitted these notes to Bill as part of SDS update at ref SDS 11
241271 -     line 47.]
241272 -
241273 -     [See call to Bill at ref SDS 12 line 65.]
241274 -
241275 -     [See lunch with Bill on 970801, ref SDS 15 line 66.]
241276 -
241277 -     [See telecon with Bill on 970809, ref SDS 17 line 73.]
241278 -
241279 -     [See telecon with Bill on 970828, ref SDS 18 line 77.]
241280 -
241281 -
241282 -
241283 -
241284 -
241285 -
2413 -
Distribution. . . . See "CONTACTS"