1. James W. Bilbro JB Consulting International Huntsville, AL Using the Advancement Degree of Difficulty (AD 2 ) as an input to Risk Management Multi-dimensional Assessment of Technology Maturity Technology Maturity Conference Founders Inn & Spa, Virginia Beach, VA September 8-12, 2008

2. Academy of Program/Project & Engineering Leadership 2 Advancement Degree of Difficulty (AD2) is a method of systematically dealing with aspects beyond TRL. It is a “predictive” description of what is required to move a system, subsystem or component from one TRL to another. It provides information in the form of: Liklihood of occurrence of an adverse event. Risk Cost to ensure that such an event does not occur. The time required to implement the necessary action. Using AD 2 as an Input to Risk Management Impact

3. Academy of Program/Project & Engineering Leadership 3 AD 2 consists of a set of questions in 5 specific areas: –Design and Analysis –Manufacturing –Software Development –Test –Operations The questions are asked about each element in the product WBS structure from the top level system down to the individual component. The questions are not directed toward the element itself, rather toward the issue of: –Do you have the resources – people, skills, tools, facilities, etc. to design, manufacture, test and operate it? Using AD 2 as an Input to Risk Management

4. 5-41140 Using AD 2 as an Input to Risk Management The levels of risk associated with AD 2 are described in terms of the experience base of the developers. i.e., have they done this before?

5. 5-41140 Using AD 2 as an Input to Risk Management Requires new development outside of any existing experience base. No viable approaches exist that can be pursued with any degree of confidence. Basic research in key areas needed before feasible approaches can be defined. Requires new development where similarity to existing experience base can be defined only in the broadest sense. Multiple development routes must be pursued. Requires new development but similarity to existing experience is sufficient to warrant comparison in only a subset of critical areas. Multiple development routes must be pursued. Requires new development but similarity to existing experience is sufficient to warrant comparison on only a subset of critical areas. Dual development approaches should be pursued in order to achieve a moderate degree of confidence for success. (desired performance can be achieved in subsequent block upgrades with high degree of confidence. Requires new development but similarity to existing experience is sufficient to warrant comparison in all critical areas. Dual development approaches should be pursued to provide a high degree of confidence for success. Requires new development but similarity to existing experience is sufficient to warrant comparison across the board. A single development approach can be taken with a high degree of confidence for success. Requires new development well within the experience base. A single development approach is adequate. Exists but requires major modifications. A single development approach is adequate. Exists with no or only minor modifications being required. A single development approach is adequate. 9 8 7 1 2 3 4 5 6 AD 2 LEVEL 90% 80% 70% 0% 10% 20% 30% 40% 50% RISK

6. Using AD 2 as an Input to Risk Management Academy of Program/Project & Engineering Leadership

7. Using AD 2 as an Input to Risk Management Academy of Program/Project & Engineering Leadership

8. * De Meyer, et al Relating AD 2 to Project Uncertainty: from Variation to Chaos * Using AD 2 as an Input to Risk Management Variation: Cost, time and performance levels vary randomly, but in a predictable range. Foreseen Certainty: A few known factors will influence the project but in predictable ways. Unforeseen Uncertainty: One or more major influence factors cannot be predicted. Chaos: Unforeseen events completely dominate the project’s target, planning and approach.

9. Using AD 2 as an Input to Risk Management Academy of Program/Project & Engineering Leadership

10. Using AD 2 as an Input to Risk Management Academy of Program/Project & Engineering Leadership LevelLikelihoodProbability of Occurrence 1Not Likely~10% 2Low Likelihood~30% 3Likely~50% 4Highly Likely~70% 5Near Certainty~90% Likelihood DOD Likelihood Descriptions Relating AD 2 to a 5X5 Risk Matrix

11. Using AD 2 as an Input to Risk Management Academy of Program/Project & Engineering Leadership LevelTechnical PerformanceSchedule 1 Minimal or no consequence to technical performance Minimal or no impact 2 Minor reduction in technical performance or supportability, can be tolerated with little or no impact on the program Able to meet key dates. Slip <*month(s) Budget increase or unit production cost increases. <**(1% of Budget) 3 Moderate reduction in technical performance or supportability with limited impact on program objectives Minor schedule slip. Able to meet key milestones with no schedule float Slip <*month(s) Sub-system slip<*month(s) plus available float Budget increase or unit production cost increases. <**(5% of Budget) 4 Significant degradation in technical performance or major shortfall in supportability; may jeopardize program success Program critical path affected Slip <*month(s) Budget increase or unit production cost increases. <**(10% of Budget) 5 Severe degradation in technical performance. Cannot meet KPP or key technical/supportability threshold; will jeopardize program success Cannot meet key program milestones Slip <*month(s) Budget increase or unit production cost increases. >**(10% of Budget) Consequence DOD Consequence Descriptions

12. 5-41140 Using AD 2 as an Input to Risk Management Requires new development outside of any existing experience base. No viable approaches exist that can be pursued with any degree of confidence. Basic research in key areas needed before feasible approaches can be defined. Requires new development where similarity to existing experience base can be defined only in the broadest sense. Multiple development routes must be pursued. Requires new development but similarity to existing experience is sufficient to warrant comparison in only a subset of critical areas. Multiple development routes must be pursued. Requires new development but similarity to existing experience is sufficient to warrant comparison on only a subset of critical areas. Dual development approaches should be pursued in order to achieve a moderate degree of confidence for success. (desired performance can be achieved in subsequent block upgrades with high degree of confidence. Requires new development but similarity to existing experience is sufficient to warrant comparison in all critical areas. Dual development approaches should be pursued to provide a high degree of confidence for success. Requires new development but similarity to existing experience is sufficient to warrant comparison across the board. A single development approach can be taken with a high degree of confidence for success. Requires new development well within the experience base. A single development approach is adequate. Exists but requires major modifications. A single development approach is adequate. Exists with no or only minor modifications being required. A single development approach is adequate. 9 8 7 1 2 3 4 5 6 AD 2 LEVEL 90% 80% 70% 0% 10% 20% 30% 40% 50% RISK 90% 70% 10% 30% 50% 5 4 1 2 3 Consequence

13. Using AD 2 as an Input to Risk Management Academy of Program/Project & Engineering Leadership 5X5 Risk Matrix

14. Academy of Program/Project & Engineering Leadership 14 The AD2 assessment provides the basis for the development of the Technology Development Plan and for improved accuracy of the development of program/project cost, schedule and risk. Summary Using AD 2 as an Input to Risk Management

15. Academy of Program/Project & Engineering Leadership 15 Website: www.jbconsultinginternational.comwww.jbconsultinginternational.com Bibliography: De Meyer, Arnould, Loch, Christoph H., and Pich Michael T., “Managing Project Uncertainty: From Variation to Chaos,” MIT Sloan Management Review, pp. 60-67, Winter 2002. Risk Management Guide for DOD Acquistion 6 th Edition Version 1.0 August 2006. Using AD 2 as an Input to Risk Management