teams can take swift corrective action to rein in overspending. Thanks to the
power of EVM, one division within Parker Aerospace reduced cost overruns on
its major development programs by 92 percent within a year.
“By bringing standardized processes and tools within Parker Aerospace’s
divisions, the PMO ensures that we’re all driving in the same direction and
improves program execution and business results across the entire organization,” Mr. Draskovich says.
In addition to EVM, another major initiative to boost performance involved
implementing more robust project and program schedule reporting processes.
The PMO started measuring the completion of program “inchstones,” or tasks
scheduled to be completed within a given week; larger programs might have up
to 100 of these each week.
Prior to PMO tracking, in 2012, inchstone completion was roughly 46 percent. By 2015, it was hovering above 85 percent—and leading directly to tangible outcomes. In Parker Aerospace’s fluid systems division, on-time delivery
for a critical customer project increased from approximately 35 percent to 100
percent over a six-month period after tracking began. And in the gas turbine
fuel systems division, PMO monitoring was critical to the on-time delivery of a
combustion system to a major customer, resulting in US$22 million in subsequent contracts.
“When we execute our projects on time and on budget, our customers know
what to expect from us,” Mr. Draskovich says. “With repeated performance, our
customers will come back to us with additional opportunities.”
FLIGHT CREW TRAINING
The PMO’s leaders know that these kinds of benefits aren’t a simple product of new tools and processes, however. Teams need to be well-equipped
with the right capabilities and a common language.
At Parker Aerospace’s PMO, that begins with requiring a Project Man-
agement Professional (PMP)® or a Certified Associate in Project Management
Parker Aerospace is nearly as old as
aviation. Founded in 1917, it built parts
to support the first flight across the
Atlantic Ocean and the first moon landing. Headquartered in Cleveland, Ohio,
USA, Parker Aerospace today makes
everything from flight control, hydraulic
and pneumatic systems to wheels, brakes
and other components. These products
are destined for commercial aircraft and
military planes, helicopters, missiles and
unmanned aerial vehicles.
Major customers include:
160 Number of project and program man- agers at Parker Aerospace
Number of employees
spread across seven
operating divisions in 39 facilities across
North and South America, Europe and Asia
Parker Aerospace’s 2016 fiscal year revenue
n U.S. Department of
Defense (Parker has provided
parts for Air Force One, the
U.S. president’s plane)
n The Boeing Co.
Size: 180 full-time employees
Annual PMO budget: US$180 million (2015)
Average project budget: US$80.5 million