Using your EAC as a GPS 6 Characteristics of a Good EAC. Kim Koster, Senior Director IPM

Transcription

1 Using your EAC as a GPS 6 Characteristics of a Good EAC Kim Koster, Senior Director IPM

2 Top Ten Reasons Projects Fail BAD plans and inadequate planning processes Proposal not adequate Lack of scope comprehension Project managers not trained and/or inexperienced Failure to set and manage customer expectation Lack of leadership throughout the project Cultural and ethical misalignment Functional groups left out of the process Project management processes inadequate or not used Lack of communication 2

3 Wouldn t you like a GPS? Your GPS tells you Where you re going How to get there What time you ll arrive And even, provides alternate routes You need a GPS for project success! 3

4 Project Tiers 4

5 POWERING PROJECT PROCESSES Schedule & Resource Mgmt Efficiently plan and manage project activities, dates and resources. Performance Analysis Spot issues before they become a problem. Lessons Learned Utilize lessons learned on past projects for effective decisionmaking in the future. PROPOSAL PLANNING RISK MGMT EXECUTION MONITOR & CONTROL CLOSE OUT Proposal Mgmt An accurate proposal guides your initial PMB Risk Analysis & Tracking Identify and reduce project risk exposure for improved forecast accuracy. Cost & EVM Easily import actuals and track project Earned Value. 5

6 6 Strategic Plans: Manpower, Sales, FPRA

7 C h a racteristics of. A GOOD EAC 1. Time phased estimates 2. Integrated with Schedule 3. Account For Contingencies 4. Rate Differences 5. Compare What-If Scenarios 6. Top down planning Everyone is operating from the same information! 7

8 What Exactly is IPM IPM is the planning and execution of project so that cost, schedule, technical performance, suppliers, quality, risk and resources are integrated in a closed loop fashion. IPM utilizes multiple tool sets to provide tracking and predictive information on the status of a program or project. Intended to provide insight to make daily decisions. IPM is simultaneous and coordinated application of PM tools, methods, and processes to improve project execution, control, and governance.. Plan PLAN ANALYZE MONITOR One Integrated System 8

9 What Exactly is IPM IPM is the planning and execution of project so that cost, schedule, technical performance, suppliers, quality, risk and resources are integrated in a closed loop fashion. IPM utilizes multiple tool sets to provide tracking and predictive information on the status of a program or project. Intended to provide insight to make daily decisions. IPM is simultaneous and coordinated application of PM tools, methods, and processes to improve project execution, control, and governance.. Plan PLAN ANALYZE MONITOR One Integrated System 9

10 Plan, Plan.and Then Plan Some More

11 COST IPM The Bigger Picture Think of projects as a three-legged stool: SCOPE Schedule is King From rudimentary cost modeling to advanced governmentcompliance based EV analysis, having a sound schedule is an absolute necessity.

12 Charting our Course In driving and in project management, a lot can go wrong: You have the wrong address You didn t correctly estimate time to get to the destination You didn t understand the risks (road closures, accidents) 12

13 Getting the Address and Path Project Activities Logic Links Calendars Constraints Defines start or finish of the job Encapsulates the defined work Defines duration for a given scope of work Defines sequence of work Defines when an activity/resource can work Defines date overrides Scheduling tools are an excellent means of modeling these moving parts. But they do little for making sure the building blocks are used correctly. Resources Resource Assignment Defines who/what is available to execute work Links the executors to their work 13

14 Architecture Your Coding The Overall Architecture of Your Project Make sure your schedule is coded with the following: Integrated Master Plan (IMP) IDs Work Breakdown Structure (WBS) Cost Breakdown Structure (CBS) Organizational Breakdown Structure (OBS) Resource Breakdown Structure (RBS) 14

15 Build your Project Schedule Schedule needs to reflect the work needed to achieve the overarching objective of the project Separate deliverables from work Start your plan with a WBS Project Objective Project Scope Project Deliverables WBS What are we building? Criteria Performance Cost, quality etc List of features Breakdown of deliverables Activities Detailed work, durations, sequencing etc Resources Capacities, demands etc 15

16 C h a racteristics of. A GOOD PMB OR BUDGET Includes all the project scope Outlined in accordance with the WBS Is time phased by resource (labor, material, and ODC) Integrates directly with the IMS Process to track changes to the PMB 16

17 Importance of. FORECASTING Benefits of a robust EAC process: Predict the future Aligns with Corporate Goals Common focus Delighted customers Understand staffing needs Learn from the past Remain competitive Prepare for new work 17

18 Analyze

19 What is a KPI/Metric? Provides actionable information and will tell us how we are doing along the way Most are financial metrics such as: Cash Profit Revenue Growth New Orders Your business information Quantifiable measures used to gauge or compare performance in terms of meeting strategic and operational goals. 19

20 Guideline for Picking KPIs Avoid Death By KPI - sometimes less is more Assure the underlying data is correct Parameters are controllable by the individual that owns the result The results tie to overall corporate goals Relevance to all levels of the organization Mechanism to communicate Common Language Benchmark both externally and internally Incorporate any learning and evolve your measures 20

21 Types of Project Metrics Schedule Cost Performance Characteristics Earned Value Risk Logic Float Duration Overrun Capacity Burn rates Status Completed Delayed Level of detail Constrained Riding Data Date CPI/SPI Trending Earned schedule Exposure Hot spots Hidden paths Project management best practices Industry/corporate standards: PMI, AACE, NDIA Fuse-specific: Logic Density, Hotspot, Redundancy Compliance: DCMA 14 Point, DoD Create your own! 21

22 Monitor

23 Change Will Be A Constant What-ifing a new Project Course Do this early and often with all stakeholders Find the best path and work it with the overall team Scope comprehension and tracking Make sure that you fully understand both cost and schedule Code the IMP or the SOW in the schedule Understand the resources it will take to do the job Make sure you stay compliant Adhere to your system description and other process documents Make sure that all of the changes are in writing before work is executed The results of these new plans will become the company financial plan 23

24 Scrub Your R s and O s Understand Mitigation Plans Double up your Efforts to Mature you Risk/Opp Management Processes Agencies are continuing to look to shift the risk to contractors with more Fixed Price contracts Perform SRA on all phases of the project Make sure you understand the impact of the R s and O s in the proposal phase making sure the execution team has a good start. Redouble you efforts to understand your mitigation plans Identify your mitigation steps in your schedule Revisit to make sure that the right mitigation steps are being funded The overarching risk is in being able to forecast! 24

25 Compliance Checklist Make 100% sure that the baseline is maintained and all changes are controlled Replanning is a normal activity but should typically effect only future periods Be sure to account for all authorized changes not yet negotiated All changes to the budgets will need to flow in and out of MR and UB Make sure you are using MR properly and it should not be negative (no out of scope work coverage!) In the haste of restructuring or optimizing don t forget your rolling wave For all of the changes you and your customer are making approval is needed for open work packages Rephasing can occur but make sure it is supported by CONTRACT schedule Don t forget your LOE packages as your work moves to the right Controlled baseline changes are essential in IPM/EVM 25

26 One Ecosystem

27 Forecast Accuracy Check List PEOPLE Concept Training Budgets, Schedules, and EACs Tools training where appropriate Role based training on company policy PROCESSES Establishment of Baseline (Cost and Schedule) Define who is responsible to complete and approve the forecast Frequency of Grass Roots or Bottoms-Up Forecast? TOOLS Time Phased by Resource and Element of Cost Capability to do What-ifs and compare multiple forecasts Easy integration with scheduling tool Quick methods of getting info into the system Access to the information for decision making 27

28 Arm Your Project Team with a GPS Project Success DEPENDS on a GREAT Planning/Forecasting Process 28

29 More Information Product Information: deltek.com/products/ppm