PROJECT REVIEW CHECKLIST. Project Number

Transcription

1 CORROSION PROJECT FOLLOW-UP EVALUATION For corrosion projects that have completed research and development, transitioned to service use, and been in use for two years, submit a project review to validate overall impact and return on investment. While the review will focus on validating ROI computed at project completion, also examine and assess other features and benefits of the project. Fill out the following checklist and submit to fulfill reporting requirements. Details regarding the checklist items are found in the paragraphs following the checklist. Yes No N/A Documentation Review PROJECT REVIEW CHECKLIST Project Number Specifications, standards, technical manuals and other reference or guidance documents Stock listing (if applicable) including old and new national stock numbers (NSNs) Project plan with all updates Implementation plan Other transition and implementation documentation Records of implementation costs and system operations, maintenance and other sustainability costs New technology performance records including values of metrics associated with performance compared with established performance targets Periodic testing records done subsequent to implementation Record of actual or intended application of this technology by other units or organizations Yes No N/A Assumptions Assumptions articulated in the project plan Any additional assumptions documented in transition or implementation plans Degree to which current conditions track with assumptions Impact of current conditions that do not track with assumptions Yes No N/A Response to Mission Requirements

2 Impact on mission criticality of implementing the new technology Non-destructive or destructive testing performed New technology performance against established targets Non-quantifiable benefits and other intangibles including impact on readiness, safety and logistics footprint Degree to which this new technology is in use by other organizations or is intended to be implemented in other organization Yes No N/A Return on Investment Validation Assumptions used in computing return on investment Base case cost projection data to validate its currency New technology cost and benefits data to determine completeness and applicability New technology cost projection data to validate its utility Estimate any change in ROI based on validated base case and new technology data Comparison between pre-implementation projected ROI and new estimate Recommendations for continued review of ROI Yes No N/A Performance to Expectations Performance expectations reflected in the project plan and any subsequent transition and implementation documentation New technology performance regarding these performance expectations Degree to which the new technology has met or exceeded performance expectations Recommendations for improving performance and response to mission requirements Factors that should be reviewed in generating the checklist entries are listed in the following paragraphs. Documentation

3 This review is not designed to add requirements for project documentation. Documents to be reviewed should be those already required for effective tracking and management of any system. The documentation review consists of the following: 1. Specifications, standards, technical manuals and other reference or guidance documents 2. Stock listing (if applicable) including old and new national stock numbers (NSNs) 3. Project plan with all updates 4. Implementation plan 5. Other transition and implementation documentation 6. Implementation costs and system operations, maintenance and other sustainability costs 7. New technology performance including values of metrics associated with performance compared with established performance targets 8. Periodic testing done subsequent to implementation 9. Actual or intended application of this technology by other units or organizations Validation of Assumptions The validation of assumptions review consists of the following: 1. Assumptions articulated in the project plan 2. Any additional assumptions documented in transition or implementation plans 3. Investigation to ascertain the degree to which current conditions track with assumptions 4. Assessment of the impact of current conditions that do not track with assumptions Response to Mission Requirements The response to mission requirements review consists of the following assessments: 1. Impact on mission criticality of implementing the new technology 2. Any non-destructive or destructive testing performed 3. New technology performance against established targets 4. Non-quantifiable benefits and other intangibles including impact on readiness, safety and logistics footprint 5. Degree to which this new technology is in use by other organizations or is intended to be implemented in other organization Return on Investment Validation The return on investment (ROI) review consists of the following: 1. Review and assessment of assumptions used in computing return on investment 2. Assessment of the base case cost projection data to validate its currency 3. Review of new technology cost and benefits data to determine completeness and applicability 4. Assessment of new technology cost projection data to validate its utility

4 5. Assessment of ROI trends and projected ROI based on validated base case and new technology data gathered since project implementation 6. Comparison between pre-implementation projected ROI and assessed ROI projection. Can be termed far lower than expected, as expected, or far better than expected. If recomputation is preferred, refer to the alternative approach on the following page. 7. Recommendations for continued review of ROI Performance to Expectations The performance to expectations review consists of the following: 1. Review of performance expectations reflected in the project plan and any subsequent transition and implementation documentation 2. Review of new technology performance regarding these performance expectations 3. Assessment of the degree to which the new technology has met or exceeded performance expectations 4. Recommendations for improving performance and response to mission requirements if appropriate. Alternative ROI Validation by Re-computing Projected ROI Based on Latest Data Data used for the initial ROI calculations and data accrued during project performance should be updated after 2 or 3 years of actually using the new technology. The data collection system inherent in the project performance should continue to be used throughout the life of the new systems to maintain records and provide accurate assessment of costs and cost avoidance. Re-computation of the new system ROI should be done by accruing the annual costs per unit and using those costs to replace estimated costs during the period since new system implementation. The same data elements used to compute the projected ROI should be used to validate actual ROI in the future. Actual capital costs and operating costs attributable to system operation should be available each year, along with actual maintenance and repair costs. More specifically, projection of the new system ROI should be performed as follows Review the projected annual costs for the base case system and use current data to update those projections. This data may be available from base case systems still in use in this or other military services. Accrue the actual annual operating and maintenance costs and repair costs for the new system since its implementation Identify any changes in the expected useful life of both the base case and new systems

5 Identify any changes in the replacement costs of base case or new system components, subsystems or total system. Enter the annual new system costs and the projected baseline system cost for each of the years since implementation in the ROI spreadsheet to determine the annual benefits to date of the new system Identify any cost-quantifiable benefits of implementing the new system over and above the operating and maintenance cost differential between base case and new systems and enter them in the spreadsheet. Project the revised costs and benefits for the remaining useful life of the base case system and enter in the spreadsheet. Project the costs and benefits for the remaining years of the remaining expected useful life of the new system using the average annual benefits, adjusted for any obvious trends and predicted major expenditures, and enter in the spreadsheet. Be sure to include the replacement costs in appropriate years for the baseline system and for the new system in the ROI analysis. RETURN ON INVESTMENT ROI Computation Checklist Check the following assumptions and associated values used for computing ROI. The list is not exhaustive but suggests assumptions typically found in project plans. 1. man hours required 2. man hour rate 3. replacement costs include alternate services during replacement 4. replacement intervals 5. utilities, consumables, unique support equipment and other operating costs 6. monitoring, data collection and analysis costs 7. calibration costs 8. periodic maintenance costs 9. unscheduled maintenance and repair costs 10. failure costs alternate services until system restored 11. readiness savings acquisition cost avoidance 12. logistic footprint savings deployment, remote facility operation, and supply stock cost avoidance Return on Investment Calculation Refer to the ROI Computation document at