1. Engineering Project Management Spacecraft Design Tuesday, January 21, 2003 M. McGrath

2. Project Management Project Management is the Science and Art of Enhancing the Probability of Success by Inspired Leadership using Structured Techniques for Planning that Integrate Technical Performance, Scheduling and Budgeting (1). (1)-Fundamentals of Space Systems - Pisacane and Moore

3. Project Management Guide and Direct the effort –Science and Art –Enhancing the Probability of Success –Leadership (Inspired or not) –Structured Techniques for Planning Integrate Technical Performance, Scheduling and Budgeting

4. Elements of Management Request for Proposal (RFP) Proposal Preparation Schedule and Costs Types of Contracts (CPFF;FP) Management Tools (PERT/Gantt ; WBS) Project Organization Configuration Management Monitoring, Communication and Decision Making Production and Quality Control - Documentation Test and Checkout

5. Objectives of a Project Management Structure Deliver a product that meets the requirements of the project’s objectives. (Systems Engineering) Deliver a product that meets the requirements of the contract delivery schedule For commercial companies: meet profit objectives

6. Prerequisites Must have adequate resources and facilities available to meet the delivery schedule Terms of the contract must be realistic and adequate to cover the cost to perform under the contract

7. Project Management Resources Administrative –Management, Infrastructure, Overhead, Building, etc. Engineering –Scientists, Engineers, Technicians, Outside vendors

8. Continued Cost Management –Estimating, Accounting, Cash Flow, Direct/Overhead Rate, Earned Value, Profit Contract Law Negotiations Scheduling

9. Project Manager’s Authority Technical Decisions –Directing the design approach –Selecting subsystems or components –Identifying type and scope of tests Commercial Decisions –Make or Buy –Selecting/recommending subcontractors or vendors

10. Continued Administrative Decisions –Selecting and assigning personnel –Scheduling personnel, resources and equipment Monetary Decisions –Determining the expenditure of funds

11. Project Procurement RFP -- Request for Proposal –Cover Letter –Specifications –Contract Schedule –Technical Proposal Requirements –Cost Breakout (Details and Depth) –General and Administrative Clauses –Supplemental Data

12. Project Procurement (Continued) Do you participate? –Since contract gets awarded to only one company — unsuccessful efforts can be a loss. Considerations: –1. Technical Resources –2. Facilities –3. Workload –4. Competition — Advantages and Experience –5. Delivery... Reasonable? –6. Risks?

13. Technical Considerations and Performance Specifications Careful Consideration and Review –Primary Analysis Design approach that satisfies requirements –Secondary Analyses Design approach that is most compatible with resources, experiences and facilities

14. System Design Considerations Translation of the technical performance requirements into the system technical approach. Dividing the system into tiers of design Selecting feasible subsystem designs that are compatible with each other, and will satisfy specification requirements

15. Continued Reviewing and revising the system design approach so as to optimize from the point of view of: –cost –required performance –schedule Preliminary Block Diagram Work Breakdown Structure

16. Preparation of the Proposal Format of the Proposal: Presentation, Rules, Length, etc. Areas of work that need to be included Evaluation Factors: –Criteria for scoring –Weighing of factors Proposal Outline

17. Continued Proposal Language: How best to get your point across Technical Description Costing Scheduling Management — facilities, personnel, experience Team Review

18. Contracts Fixed Price and Cost Reimbursable Fixed Price –Cost is established at the signing of the contract, and assuming no changes are made, the price remains fixed. Cost Reimbursable –Contractor is reimbursed for all or part of the costs incurred in the execution of the contract.

19. Factors Influencing Contract Selection Complexity of the design –Low Complexity... Fixed Price –High Complexity... Cost Reimbursable Risk Assumed by the Contractor –Low Risk... Fixed Price –High Risk... Cost Reimbursable

20. Continued Period of Contract... Rate Changes, Overhead Changes, Technical Changes Competition –Many bidders may change a cost reimbursable contract to a fixed price. This is generally more desirable from the customer’s point of view.

21. Types of Fixed Price Contracts Firm Fixed Price (FFP) –Contractor agrees to deliver to specification for a firm, fixed price. Fixed Price with Escalation Contract –certain costs (labor rates, materials, overhead) can be adjusted

22. Continued Fixed Price with Redetermination Contract –Upward and downward adjustment –Downward adjustment Redetermination during life of contract Redetermination after life of contract Fixed Price Incentive (Minimal R&D) –Long periods of time / Large production quantities –Reward / Penalize cost control of manufacturing and gen. admin.

23. Two Step Procurement First solicitation made for Technical Proposals Some selected for Concept Study –Effective at identifying problems early –Information provided to proposer –Minimizes time spent

24. Cost Type Contracts Greatest Risk on Customer Used when there is significant Research and Development (R&D) Wise to use contractor who: –has experience –has history of performance

25. Continued Customer counts on contractor giving his best effort. Cost overruns typically result in a “reputation” that can be factored in during subsequent efforts. No incentive for efficient operation Two Types of Cost Type Contracts –Cost Plus Fixed Fee (CPFF) –Cost Plus Incentive Fee (CPIF)

26. Cost Plus Fixed Fee (CPFF) Fixed fee or profit as % of expected contract cost Contractor is reimbursed for all expenses Fee can change when costs incurred are beyond control of contractor –Scope change, strike, failure of customer to deliver Contractors generally try to meet targets

27. Continued Overruns indicate poor management, in effect, contractor is in wrong business Justification for use –Heavy R&D, Difficult to estimate cost, Bidding to a performance specification Customer Protection –Clause insertion Subcontract approval, allowable costs, negotiated overhead rates

28. Cost Plus Incentive Fee (CPIF) Compromise between Fixed Price and CPFF Provides for the reimbursement of all allowable costs and a fee based on an incentive formula

29. Risk Purpose of a commercial organization is to make a profit Companies may be willing to bid and take a loss if: –there is expectations of more units to be built –if they can keep key people working during a slack period

30. Project Management Tools PERT/GANTT Charts –Program Evaluation Review Technique Activity — element of work Event— Start or Completion Point Network — Graphic representation of a program consisting of activities and events which are shown as interconnected paths Critical Path — the path of a network that requires the longest period of time to complete

31. Continued Integrated Budgeting Tools — % Complete; % Expended Microsoft Project

32. Uncertainty Reducing Techniques To reduce requirement and development uncertainties –configuration management –limited state of the art advances (upper bound on achievable performance) –successive limited objectives (distinct development phases) –distinct development models and prototypes

33. Continued –early and repeated testing (do it!) –incremental improvements –parallel development (comparison but costly) To reduce dynamic uncertainties –keep the options open –technological transparency

34. Configuration Management Configuration of a product is subject to continuous change during development. Desirable, but needs to be controlled. Configuration management ensures that a product meets requirements, and that any changes in the requirements are evaluated, identified, controlled and recorded.

35. Continued Specifications form a major portion of the baseline which serves as a point of departure for future work. Configuration items partition the product into a physical hierarchy that force the identification of interfaces. If one assigns a baseline to each configuration item and to each interface, progressive refinement of the product can proceed at any subsystem level in a systematic manner.

36. Uncertainty and Risk Three related situations: –Risk: describe all possible outcomes, and assign meaningful occurrence probabilities to each. –Uncertain: all alternatives are known but no objective basis to assign probabilities –Ignorance: all the alternative outcomes cannot be defined, let alone their occurrence probabilities. –Known unknowns and unknown unknowns

37. Odds and Ends Hiring –Talent, desire, enthusiasm Management –Time, attention, direction 2 PI 5 Rule of costing