Structural Barriers ToSystems Engineering  Mr. Michael GaydarChief Systems Engineer
System Engineering Defined     NASA PM Challenge                                        SYSTEMS ENGINEERING               ...
System Architecting     NASA PM Challenge               • Disciplined process to progressively add depth to               ...
Structural Barriers To SE     NASA PM Challenge                 •        Programmatic                 •        Requirement...
Programmatic Barriers     NASA PM Challenge               • Budget Created From Unrealistic                 Schedule      ...
Requirements Definition     NASA PM Challenge               • Requirements Definition                            – User De...
Concept of Operations     NASA PM Challenge               • Lack Of Early User Involvement               • Functionality N...
Constraints     NASA PM Challenge                 • Non-Developmental Items                 • Capital Investment In Logist...
Risk Mitigation     NASA PM Challenge                  Risk Identification And Mitigation Is              Required On All ...
DOD RM Handbook     NASA PM Challenge                     A common misconception, and program                     office p...
Risk Defined     NASA PM Challenge                                        DOD Risk Management Guide                       ...
Risk Management     NASA PM Challenge                 • Risk Management Is Only A Subset Of                   Project Mana...
First Law Of Risk Management     NASA PM Challenge                                        Risk Management Programs        ...
Risk Avoidance Is The Goal     NASA PM Challenge         • Historically – All Programs Have Contained           Unknown El...
Program Management By The Book     NASA PM Challenge               •        Requirements Must Be Achievable And Documented...
Second Law Of Risk Management     NASA PM Challenge                    Trading Cost-Schedule-Performance                  ...
DOD Handbook RM Objective     NASA PM Challenge               The objective of a well-managed risk               managemen...
Categories Of Risk     NASA PM Challenge                 Risk                 Technical              Critical Design Eleme...
There Must Be Trade Space     NASA PM Challenge               Congressional            Contractor &   User Domain         ...
Third Law Of Risk Management     NASA PM Challenge                                Hope springs eternal                    ...
Ineffective Mitigation Paths     NASA PM Challenge               • Technical                            – Balance Design A...
Effective Risk Mitigation Plan     NASA PM Challenge                 • Risk Realization MUST Be Part Of Risk Mitigation   ...
Fourth Law Of Risk Management     NASA PM Challenge               You Get What You Pay For…                        First C...
Risk Mitigation Costs     NASA PM Challenge               • The Funding To Resolve Risks Cannot Be                 Another...
SE Project Management     NASA PM Challenge                                        Contractually Binding Commitment To Pro...
Summary     NASA PM Challenge                 • Risks Are Rooted In Uncertainty                 • Disciplined Use Of PM To...
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Gaydar.michael

  1. 1. Structural Barriers ToSystems Engineering Mr. Michael GaydarChief Systems Engineer
  2. 2. System Engineering Defined NASA PM Challenge SYSTEMS ENGINEERING The efficient management of resources and design to produce a system (product) meeting the user’s defined needs.Michael Gaydar, AIR-4.1, 301-757-5549Version 1.0 2
  3. 3. System Architecting NASA PM Challenge • Disciplined process to progressively add depth to system architecture and component design in support of the complete breadth of system requirements • Iterative process that continually revisits, analyzes, and updates existing design as knowledge is gained through detailed decomposition and design maturity • A process that dynamically adapts to the constraints of the system and the constraints of management resources Art and Science Art and ScienceMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 3
  4. 4. Structural Barriers To SE NASA PM Challenge • Programmatic • Requirements Definition • Unproven Technology • Concept Of Operations • Constraints Primary Structural Barrier Primary Structural Barrier Risk Management Techniques Risk Management TechniquesMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 4
  5. 5. Programmatic Barriers NASA PM Challenge • Budget Created From Unrealistic Schedule • Failure To Recognize Technical Authority • Lack Of Early Engineering Engagement – Flawed Basis of Estimate (BOE) – Undisciplined Configuration Management – Undisciplined Information Exchange • Tactical Versus Strategic View – Short Term Budget Execution – Life Cycle Costs IgnoredMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 5
  6. 6. Requirements Definition NASA PM Challenge • Requirements Definition – User Defined Capabilities Vague Or Immeasurable – Life-Cycle Requirements – Derived & Correlated Design Requirements Not Recognized • Unproven Technology – Overreaching Requirement Characterized As A Management Challenge – Design Dependence On Unproven Technology – Lack Of Alternate Design Paths Or Capability ReliefMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 6
  7. 7. Concept of Operations NASA PM Challenge • Lack Of Early User Involvement • Functionality Not Derived From Capabilities • Reliability & Maintainability Not UnderstoodMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 7
  8. 8. Constraints NASA PM Challenge • Non-Developmental Items • Capital Investment In Logistic & Supply Chain • Legacy Compatibility Requirements • Proprietary Data, Qualifications, & Use Data • Sub-Contractor Access & Control Constraints Limit Performance Constraints Limit PerformanceMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 8
  9. 9. Risk Mitigation NASA PM Challenge Risk Identification And Mitigation Is Required On All Programs However, Poor Implementation And Understanding Of Risk Management Has Resulted In Unacceptable Level Of Risk Assumption Primary Structural Barrier Primary Structural Barrier Risk Management Techniques Risk Management TechniquesMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 9
  10. 10. DOD RM Handbook NASA PM Challenge A common misconception, and program office practice, concerning risk management is to identify and track issues (vice risks), and then manage the consequences (vice the root causes). This practice tends to mask true risks, and it serves to track rather than resolve or mitigate risks.Michael Gaydar, AIR-4.1, 301-757-5549Version 1.0 10
  11. 11. Risk Defined NASA PM Challenge DOD Risk Management Guide “Risk is a measure of future uncertainties in achieving program performance goals and objectives within defined cost, schedule and performance constraints.” RISK IS NOT: RISK IS NOT: Lack of Oversight, Failure to Plan, or Lack of Oversight, Failure to Plan, or Unrealistic Performance Goals Unrealistic Performance GoalsMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 11
  12. 12. Risk Management NASA PM Challenge • Risk Management Is Only A Subset Of Project Management • Risk Identification – Poorly Understood – Incorrectly Implemented • Risk Mitigation Plans – Inadequate – Outside Daily Program Management • Risk Realization Totally IgnoredMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 12
  13. 13. First Law Of Risk Management NASA PM Challenge Risk Management Programs Require Risky ProgramsMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 13
  14. 14. Risk Avoidance Is The Goal NASA PM Challenge • Historically – All Programs Have Contained Unknown Elements Known As Risk • Risk Assumption Has Replaced Risk Avoidance • Gambling Has Replaced Management • Risk Tolerance Has Increased • Risk Acceptance Authority Not Aligned With Responsibilities • Result: Failures And Losses On The Rise Fundamental Question Fundamental Question Are You Willing To Let Other People Are You Willing To Let Other People Gamble With Your Money? Gamble With Your Money?Michael Gaydar, AIR-4.1, 301-757-5549Version 1.0 14
  15. 15. Program Management By The Book NASA PM Challenge • Requirements Must Be Achievable And Documented • Historically Derived Basis Of Estimate • Integrated Master Schedule – All Tasks Are Planned And Linked – Well Constructed IAW ANSI 748 – Critical Path Understood And Managed – Fully Integrated Supplier And Government Schedule Dependencies • Integrated Data Environment – Deliverables Identified In Contractual Language – Deliverables Integrated Into Master Schedule • Configuration Management Established & Active • Timely Problem Resolution Across Contractual Lines • Alternate Design Paths For Critical TechnologiesMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 15
  16. 16. Second Law Of Risk Management NASA PM Challenge Trading Cost-Schedule-Performance Is A Ponzi SchemeMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 16
  17. 17. DOD Handbook RM Objective NASA PM Challenge The objective of a well-managed risk management program is to provide a repeatable process for balancing cost, schedule, and performance goals within program funding, especially on programs with designs that approach or exceed the state-of-the-art or have tightly constrained or optimistic cost, schedule, and performance goals… …Successful risk management depends on the knowledge gleaned from assessments of all aspects of the program…Michael Gaydar, AIR-4.1, 301-757-5549Version 1.0 17
  18. 18. Categories Of Risk NASA PM Challenge Risk Technical Critical Design Elements Depend On Technology That Is Just Not Achievable. Caused By Overreaching Performance Requirements Embedded In KPPs. Programmatic Resource Estimates (Budget & Schedule) Too Low. Caused By Insufficient BOE Or Optimism. • Technical Risk Against KPPs & Thresholds Yields No Trade Space • Result: No Resource Increases Will Eliminate Technical Risk. True Technical Risk Will Always Result In A Requirements Disconnect When Realized. • True Technical Risk Requires Alternate Design Paths That Deliver Lower, But Acceptable, Levels Of Performance • Minimum Acceptable Performance, And Design, Must Be Achievable Within Current State Of Technology.Michael Gaydar, AIR-4.1, 301-757-5549Version 1.0 18
  19. 19. There Must Be Trade Space NASA PM Challenge Congressional Contractor & User Domain Domain Program Office Domain Requirements CDD Program of Flexibility Record Risk Contingency Current EAC Threshold (CAIG) Threshold Requirements Do Requirements Not Support CAIV Design Margin Cost Estimate (Proposals)Michael Gaydar, AIR-4.1, 301-757-5549Version 1.0 19
  20. 20. Third Law Of Risk Management NASA PM Challenge Hope springs eternal …until the spring dries up.Michael Gaydar, AIR-4.1, 301-757-5549Version 1.0 20
  21. 21. Ineffective Mitigation Paths NASA PM Challenge • Technical – Balance Design Against Unproven Technology – Pursue Single Design Path Hoping Testing Will Show Compliance – Carry Significant (RED) Risk Beyond Design Closure (Roughly PDR) • Execution – Hope For Optimistic Performance Through Management Challenges – Shift Risk To Suppliers In Firm Fixed Price Contracts – Fail To Include All Aspect Of Rebaseline In New EACMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 21
  22. 22. Effective Risk Mitigation Plan NASA PM Challenge • Risk Realization MUST Be Part Of Risk Mitigation Strategy • Risk Mitigation Steps Must Address Root Cause Uncertainty – Technical: Demonstrate Improved Performance Predictions Or Alternate Design Path – Execution: Improve Resource Estimates • Technical Performance Measures (TPM) Are Essential To Mitigating Technical Risk • Task Identification Is Essential to Mitigating Execution Risk Risk Mitigation Steps Should Not Be A Way To Buy Time Risk Mitigation Steps Should Not Be A Way To Buy Time In The Hope The Risk Will Be Eliminated In The Hope The Risk Will Be EliminatedMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 22
  23. 23. Fourth Law Of Risk Management NASA PM Challenge You Get What You Pay For… First Corollary: You Pay For Nothing-You Get NothingMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 23
  24. 24. Risk Mitigation Costs NASA PM Challenge • The Funding To Resolve Risks Cannot Be Another Resource Risk • Risk Mitigation Plans Are Unplanned Work • Unplanned Work Requires MR To Execute • Risk Mitigation Impacts Resources Already Dedicated To Identified Tasks • Unfunded Risk Mitigation Is Unresolved Risk Risk Mitigation Is A Risk Mitigation Is A “Pay Me Now Or Pay Me Later” “Pay Me Now Or Pay Me Later” Decision DecisionMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 24
  25. 25. SE Project Management NASA PM Challenge Contractually Binding Commitment To Project Management Through Systems Engineering Well Specified Design, Build, And Acceptance Criteria Well Documented Integrated Master Schedule (IMS) & Work Breakdown Structure (WBS) Linked Contractor/Government/Suppliers IMS With Dependencies, Deliverables, And Resource Limitations Event Driven Engineering Reviews Documented In Contractor/Government SEP Earn Value Assigned By Technical ExpertsMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 25
  26. 26. Summary NASA PM Challenge • Risks Are Rooted In Uncertainty • Disciplined Use Of PM Tools Is Required To Identify Areas Of Uncertainty (True Risks) • Historical Execution And Standard Design Practices Normalize Optimism • Money And Time Doesn’t Mitigate All Technical Risk-Requirement Relief Only Solution • Requirements Trade Space Must Exist • Mitigation Plans Must Attack Root Cause Of Risk-UncertaintyMichael Gaydar, AIR-4.1, 301-757-5549Version 1.0 26
  27. 27. QUESTIONS?

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