1. Felix Sanchez Designing the Program Structure and Organization Project Management for ARA Engineers and Scientists

2. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 2 Desired Learning Objectives  Describe and discuss the benefits and use of WBS for planning work, tracking the work and reporting the cost  Recognize how to organize a team for various projects and relationship of WBS and organization  Introduce students to EVMS principles and their applications for tracking and controlling projects  Student exercise 2a and 2b: Be able to construct a WBS Identify and explain how to design an organization to execute a program

3. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 3 PM Course Overview  PM Responsibilities  Define the Program Structure Review SOW Scope Design the WBS – Driven by SOW  Design the Team Organization Driven by WBS or by Customer (IPT, Contract Requirements, etc.) Driven by Size of Project/Cost  Design the Plan and Schedule Integrated Master Plan Integrated Master Schedule

4. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 4 Five Elements for Program Management 1.Organization: Define contractual effort and assign responsibility for work. 2.Planning and Budgeting : Plan, schedule, budget and authorize work. 3.Cost Reporting: Accumulate cost of work and material. 4.Analysis: Compare planned and actual costs to performance and analyze variances. Develop estimates of final cost. 5.Close Out: Ensure within cost and schedule and market follow-on efforts. Work Breakdown Structure (WBS) Program Organization Task Definition Schedules Budget (Resource Loaded Network) Cost Reporting Performance Measurement Variance Analysis Reports (VAR) Estimate at Completion (EAC) Close Out Performance Measurement Close Out

5. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 5 Step 1 – Define the Program Structure by Defining the Scope and Tasks (i.e. WBS)  Review SOW  Account for Proposal Commitments  Useful Tools: Work Breakdown Structure (WBS) ∙Carves up a large and complex project into smaller, more easily managed steps ∙Can also be a good reporting tool ∙Note that not all customers or contracts require a formal WBS – customers do want insight into what tasks comprise your total effort Budget Bogey from Customer

6. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 6 Complex Projects  Use a Work Breakdown Structure (WBS) Break into smaller, more manageable chunks of work Usually structure around deliverables or products Good when you have vastly different activities going on and/or various Divisions working in parallel  Use of WBS Protects you and ARA from errors of oversight in planning Enhances cost estimates fidelity Allows greater insight on process tracking

7. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 7 What is a Work Breakdown Structure (WBS)?  Identifies the lowest level at which work is managed  A product-oriented family tree which completely defines the project/program and is composed of: Hardware Software Services (program management, maintenance, logistics, etc.) Data Manufacturing Etc.

8. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 8 What About Small Projects?  The WBS is analogous to Phases and tasks used in ARA with BST  WBS not required or feasible if the work is straight forward and not many varying tasks within one Division  Good Practice: Assigning phases, tasks and subtasks (analogous to WBS levels 1, 2, 3) from a SOW in order to plan the work down to the task level  We will show how to use WBS (or Phases, Tasks, Subtasks) in BST to track costs on your project

9. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 9 The Complete Work Breakdown Structure for A/C – Example Aircraft System Op/Site Activation Manufacturing Data Support Equipment TrainingLogistics System T&E System Engineering/ Program Management Level 1 Level 2 Air Vehicle Initial Spares and Initial Repair Parts Airframe Propulsion Application Software System Software Communications Navigator/Guidance Central Computer Fire Control Data Display and Controls Survivability Automatic Flight Control Central Integrated Checkout Antisubmarine Warfare Armament Weapons Delivery Auxiliary Equipment DT&E OT&E Mockups T&E Support Test Facilities Equipment Services Facilities Tech Pubs Engrg Data Support Data Mgt Data Data Depository Test and Measuremen t Equipment Support and Handling Equipment System Assembly, Installation and Checkout on Site Contractor Tech Support Site Construction Level 3 (Per Mil Std Handbook - 881)

10. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 10 Example: WBS Numbering System

11. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 11 ARA Sample: WBS for S/W Program WBS IDDescription 200200CXSS Design and Integration 200201 Interface with operational/tactical planning tools 200202Automate CDET spreadsheet methodology 200203Maintain HPAC interface 200204Reduce run times 200205CLCL updates 200206Make menu and icon buttons consistent 200207Enhance report generator 200208Simplify GUI in the building model properties wizard 200209Add ability to import STMG targets 200210Use JWS for weapon data 200211Interface with RainDrop 210200CXSH Design and Integration 210201WMD facility functional defeat model 210202Improved rock mass stability model Table 1. Work Breakdown Structure for IMEA 8.0, Phase 1 Note: full version of IMEA WBS in Resource Section of E-Book

12. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 12 WBS Index Format – Maybe a CDRL Requirement

13. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 13 How do we Develop the WBS?  Do a line-by-line review of program requirements (SOW)  Create a comprehensive compliance matrix, assigning each SOW paragraph to a WBS element (For smaller projects – assign SOW paragraph to a Phrase, Task or Level) Ensures that all requirements are accounted for in your costing and responsibility assignments Identifies necessary additions to get final product Clarifies various tasks  Define the work for each element For large projects, build a WBS dictionary to explicitly define what is included in that element and to inform everyone exactly what SOW scope is captured under each WBS element For small projects, a WBS dictionary not required but a description or definition of work element (Tasks) is required for the ARA Project Plan

14. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 14 Compliance WBS vs. SOW Matrix Sample For smaller projects, this could be Phases, Tasks and Subtasks Excel WBS template provided in simulation exercise 2a handout

15. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 15 Summary of WBS  A product-oriented family tree composed of hardware, software, services and data which completely defines the project/program  Cornerstone/Foundation for the development of cost/schedule tracking WBS drives the organization design to manage the program WBS Logical flow of the work to be accomplished Provides a framework for structured cost/schedule reporting Aids in tracking and summarizing performance measurement data System for summarizing cost and schedule data into successively higher levels

16. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 16 Five Elements for Program Management 1.Organization: Define contractual effort and assign responsibility for work. 2.Planning and Budgeting : Plan, schedule, budget and authorize work. 3.Cost Reporting: Accumulate cost of work and material. 4.Analysis: Compare planned and actual costs to performance and analyze variances. Develop estimates of final cost. 5.Close Out: Ensure within cost and schedule and market follow-on efforts. Work Breakdown Structure (WBS) Program Organization Task Definition Schedules Budget (Resource Loaded Network) Cost Reporting Performance Measurement Variance Analysis Reports (VAR) Estimate at Completion (EAC) Close Out Performance Measurement Close Out

17. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 17 Step 2 – Define the Organization  Organization Structure Driven by WBS Driven by Customer (earned value management, IPT, contract requirements, etc.) Driven by Size of Project or Cost  Clear chain of reporting and accountability to Task Leaders

18. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 18 Organization Driven by WBS  Program organization where WBS Level 2 performance reporting required  Team organization where WBS Level 3 reporting required Team Leaders responsible for work/budgets at WBS Level 2 Team Leaders responsible for work/budgets at WBS Level 3 Program Manager Team Leader #1 Team Leader #2 Team Leader #3 Task Leader #1 Task Leader #2 Task Leader #3

19. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 19 Does the Project Require Earned Value Management (EVM)?  Earned Value Management is a performance measurement system: “Where do you stand schedule-wise?” ∙Tracks the amount of planned/scheduled work that has been completed “Are you getting your money’s worth for the effort to date?” ∙Tracks the accomplishment of planned work  “Tailored” EVM covered in later module Note: As of July 5, 2006, the Federal Acquisition Regulations were changed to allow EVM on all projects, including the Department of Transportation. The dollar threshold is decided by each agency. In 2008, FARs require for all projects over $20M. (ARA has seen requirements on projects as small as $1.0-2 million.)

20. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 20 What and Who are Control Account Managers (CAM)?  For EVM by definition, the “Control Account Manager (CAM)” is responsible for cost, schedule and performance for: WBS Level 1 reporting, Program Manager is CAM WBS Level 2 reporting, Team Leader for WBS Level 2 is CAM WBS Level 3 reporting, Task Leader for WBS Level 3 is CAM  The specific Control Account (Task Account) is defined by you for your project Based on reporting requirements Based on how much you want to delegate to who Based on “what makes sense” is the right level to track cost, schedule and performance

21. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 21 Typical Earned Value Organization Program Manager Business Manager Technical Manager Subcontract Mgt Planning Financial Control EVM CAM Task Leader 2 Task Leader 1 Task Leader 4 Task Leader 3 Task Leader 6 Task leader 5 Note: Control Account Manager (CAM) (e.g., analogous to Team Leader)

22. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 22 ARA Organization for S/W Program Sample A&AS DTRA SAM Program Manager B. Roth Principal Investigator (PI) B. Roth Principal Investigator (PI) D. Hope IWMDT/NuCSIntegration IWMDT/NuCSIntegration A. York Management Oversight A. York Management Oversight R. Chase Subcontracts Mgr R. Chase Subcontracts Mgr IPT lead Organize HARP Tasking Block Planning Block execution oversight SME Management Block Planning Execute Blocks Manage Software Development processes Main interface to subs Issues tasks Asses status Earned-value management Team Members Team Members D. Hope Project Manager (PM) D. Hope Project Manager (PM) Develop program plans Customer interface Earned value tracking Deliverable management Subject Matter Experts ARA Technical Staff ARA John Incerti Dave Willet Paul Edwardson Aaron Bray Chris Volpe … Your organization can be tailored to your project and customer

23. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 23 ARA Organization for Smaller Projects Example Technical Team K. Matson Soils/CONOPS ARA Project Management Project Management Alberico Menozzi PI ARA Alberico Menozzi PI ARA JIEDDO Customer JCREW S&T Lead Ray Irwin S. Frank Sim test bed ray-tracing, ARA B. Marchand GIS Expert ARA Support J. MacKenzie Tech. Writer ARA J. MacKenzie Tech. Writer ARA W. Judge 3D SNE Models ARA A. Peruggi software support ARA M. Hardy D.O.E./statistics ARA M. Buff RF Prop/Soils Vadum Stakeholders S&T Org, M&S Committee, NRL, …

24. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 24 Integrated Product Team Organization Program Manager Design IPT Test IPT Manufacturing IPT Note: IPTs mirror WBS structure

25. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 25 Advanced Spectroscopy Program Organization – Sample Complex Project  Background: Complex $250 million five-year effort for design, test and production of radiation detection portals  Manufacturing shared by ARA and very large subcontractor  WBS drove the organization and cost proposal  IPT organization chosen to show seamless support by ARA and subcontractor. IPTs track with WBS.  Ten Tasks Orders in first year Task Order. Tasks track with WBS.  Production tasks started in second year

26. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 26 Sample Organization Design from ARA’s Advanced Spectroscopy Program Proposal Figure M-3. The ARA Team’s IPT approach provides clear mapping of TI Tasks and WBS elements to people in the organization, ensuring clear lines of authority and accountability.

27. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 27 Summary: Designing the Program Structure  SOW Drives the WBS  Organizational Structure Driven by WBS Driven by Customer (IPT, Contract Requirements, EVMS, etc.) Driven by size of project or cost Can be tailored to your project The right Program Structure and Organization are key to the success of the four elements of Program Management

28. Copyright 2009. All rights reserved. Applied Research Associates, Inc. 28 Leadership and Good Management Essential to Project Success Defining WBS and Organization are First Steps Deltek, EVM Compare Cost to Budget