 | | | 8 pages | | | 05-05-2010 | | |  |
| | Not evaluated | | |
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The Indian Government invests in huge amounts of money in DRDO up to Rs.50 billion (more than US $1 billion) per annum for undertaking different types of R&D projects including very Large System Development projects. Presently DRDO has 400 R&D ongoing projects with an outlay of Rs 20,000 Crores (over US $400 billions).
R&D projects are characterized by very high levels of uncertainty and complexity, influenced by uncontrollable factors, and involve a unique, creative and rather unstructured process. Other inherent problems are the creeping scope of work and additional design cycles resulting in continuous modification of the plans. Creative performance is highly unpredictable, effort levels may not be observable and are almost impossible to quantify validly. Financial performance measures such as profit, return on investment, return on net assets can not be used, because it is difficult to separate contribution of R&D to the profits resulting from individual new products and the time lag between R&D efforts and the potential financial rewards. Yet another difficulty in R&D performance measurements is the reluctance of personnel to accept R&D performance measurements. Therefore, the measurement and control techniques used in other projects have been considered inappropriate for R&D and it is very difficult to measure the performance of R&D projects goals.
A critical enabler in achieving desired goals in any organization or project is the ability to measure the performance. In addition, measurement is a necessary condition for improving any system. Performance measurement encourages behaviour that achieves the goals of the organization. Performance measurement supports the prioritization of activities and measuring performance can help drive desired rapid technological obsolescence (particularly in the case hi-tech products and systems). Huge investment requirements and denial by developed countries of advanced technologies for Indian defence applications have forced India to become self reliant by developing advanced defence technologies and systems in a more effective and efficient manner. As mentioned above Performance Measurement particularly for large R&D projects is very difficult but vital for their effective and efficient execution. Presently DRDO projects’ review, monitoring and control is limited to setting budgets and periodical peer-reviews focusing on technological achievements and comparing with pre-determined milestones without going into the actual measurement of progress in R&D projects. This does not result in proactive control and its effectiveness depends on the skill and experience of the reviewer. Unfortunately, many of the DRDO projects are not completed in time due to technological complexities, uncertainties and risks inherent in R&D work and dynamics of technology control regimes. Lack of clarity and absence of written procedures also contribute to the delays. Delays cause cost overruns and loss of opportunities. Hence research is needed to measure the performance of large defence R&D projects in a systematic manner for better managing the projects in order to avoid time and cost over runs[...]
1. Introduction
2.1 Project Phases
- Fig. 1 DRDO Project Phases
- Fig. 2 Project milestones and project success
3. Important milestones
• Preliminary Design Review (PDR)
• Critical Design Review (CDR)
• Development Works
• Outsourcing Development Jobs
• Test and Evaluation
• User trials
Fig. 3 Project activities, milestones and project success
Fig. 4 Performance metrics, project milestones and project success
Fig. 5 Performance Measurement of R&D System Development Projects
Conclusion
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Defence Research & Development Organization (DRDO) Project Management | 14 pages | | | €5.40 |
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Large System DRDO Defence Research & Development Projects in India | 8 pages | | | €3.60 |
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