Sandra smalley

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Sandra smalley

  1. 1. Program and Project Management Policy Development Overview and Rationale Sandra Smalley Office of the Chief EngineerUsed with permission Page 1
  2. 2. Objectives of SessionProvide:• A high-level overview of recent policy developments• An understanding of the purpose of the selected developments• A preview of some upcoming policy developments Page 2
  3. 3. Recent Policy Developments Overview Page 3
  4. 4. Policy Developments 2007• NPR 7120.5 D - NASA Space Flight Program and Project Management Requirements “This revision of NPR 7120.5 is part of a realignment of governing documents within NASA designed to increase accountability and general clarity in the flow-down of management process requirements.”• NPR 7123.1A - NASA Systems Engineering Processes and Requirements Page 4
  5. 5. Policy Developments 2008• NPD 1000.0A - Governance and Strategic Management• NPR 7120.7 - NASA Information Technology and Institutional Infrastructure Program and Project Management Requirements• NPR 7120.8 - NASA Research and Technology Program and Project Management Requirements• NPR 8000.4 - Agency Risk Management Procedural Requirements Page 5
  6. 6. Policy Developments 2009• NPD 1000.5 - Policy for NASA Acquisition• NPR 7120.5D - NID• NPD 7120.4 - Program/Project Management Page 6
  7. 7. Policy Development Other Supporting WorkHandbook development • The SRB Handbook • The Risk Management Handbook • NPR 7120.5 Handbook • WBS Handbook • Cost Estimating Handbook • Schedule Management Handbook Page 7
  8. 8. Policy Development Why all the activity?• Improve program/project performance against external commitments (real and perceived)• More effectively support programs and projects by improving and tailoring policy, processes, and requirements – Recognize the multi-center environment in many programs and projects. This includes giving more attention to common principles, terminology, and practices while recognizing the differences that exist in Center processes and historic practices. Page 8
  9. 9. Improving Agency Performance Approach• Employ a sound approach to Acquisition – NPD 1000.5• Ensure early and continuing alignment of program project planning and budget process – Strategic planning meetings – NPR 7120.5D NID – PPBE process with annual portfolio review• Establish the proper set of requirements• Establish a life cycle process that keeps the program/project on track Page 9
  10. 10. Selected Policy Developments• Acquisition• Establishing the proper set of requirements• Space Flight and IT Baseline Policy Joint Confidence Level (JCL) Policy• Preview of NPR 7120.5 Rev E Page 10
  11. 11. Selected Policy Developments Acquisition – Definition (NPD 1000.5)Acquisition is the process for obtaining thesystems, service, construction, andsupplies the Agency needs to fulfill itsmission.Acquisition, which may include procurement(contracting for products and services), beginswith an idea or proposal that aligns with the NASAStrategic Plan and fulfills an identified need andends with the completion of the program or projector the final disposition of the product or service. Page 11
  12. 12. Selected Acquisition Policy (NPD 1000.5)• Meet programmatic, institutional, technical, cost, and schedule commitments• Base acquisition on realistic cost estimates and achievable schedules• For space flight and IT, Agency commitments are to be based on the budgeted cost and schedule associated with the confidence level approved by the decision authority.• Programs and projects are to be annually reviewed by the responsible Mission Directorate or Mission Support Office to confirm to the decision authority that their current baseline life cycle cost estimates, funding strategy, and the annual NASA budget submissions are consistent. Page 12
  13. 13. Selected Policy Developments• Acquisition• Establishing the proper set of requirements• Space Flight and IT Baseline Policy Joint Confidence Level (JCL) Policy• Preview of NPR 7120.5 Rev E Page 13
  14. 14. Establishing the proper set of requirements• Good requirements that are properly managed are essential to any successful undertaking.• 7120 Series NPRs focus program management requirements on specific product lines.• Tailoring Principles provide a means to adjust prescribed requirements to a specific task (e.g., a program/project). Page 14
  15. 15. Tailoring - DefinitionTailoring - the process used to adjust or seekrelief from a prescribed requirement toaccommodate the needs of a specific task oractivity (e.g., program/project)The Tailoring process results in the generationof Deviations and Waivers depending on thetiming of the request. Page 15
  16. 16. Tailoring Principles• The organization at the level that established the requirement approves the request for tailoring of that requirement unless this authority has been formally delegated elsewhere.• The involved management at the next higher level is informed in a timely manner of the request for tailoring of a prescribed requirement. Page 16
  17. 17. Policy Selected Developments• Acquisition• Establishing the proper set of requirements• Space Flight and IT Baseline Policy Joint Confidence Level (JCL) Policy• Preview of NPR 7120.5 Rev E Page 17
  18. 18. Space Flight and IT – Baseline and JCL Perspective• SMC baseline and JCL policy discussions date back several years.• The concept and details continue to evolve.• A number of changes and implementation details are being considered for NPR 7120.5 Rev. E. Page 18
  19. 19. Baseline Policy GoalImprove the cost and scheduleperformance of programs and projectsby improved planning based on theintegration of cost, schedule, and risk Page 19
  20. 20. Joint Cost and Schedule Confidence Level Definition (Simplified)The probability that cost will be equal toor less than the targeted cost and theschedule will be equal to or less thanthe targeted schedule date. Page 20
  21. 21. Joint Bivariate Cumulative Probability Distribution of Cost and Schedule ProbabilitySchedule (y)(Months) Cost (x) ($M) 21 Page 21
  22. 22. Current Policy• Policy applies to Space Flight and IT programs and projects in implementation.• Programs/projects are to be baselined or rebaselined based on a joint cost and schedule probabilistic analysis.• Programs - Baselined or rebaselined at a confidence level of 70 percent or the level approved by the decision authority• Projects are to be baselined or rebaselined at a confidence level consistent with the programs JCL.• Projects - As a minimum, funded at a level that is equivalent to a confidence level of 50 percent or as approved by the decision authority Page 22
  23. 23. Current Policy (Cont.)• Programs in extended operations generally are not required to develop a JCL, but new or upgraded capabilities while in ops will require a JCL.• Program and project proposed cost and schedule baselines will be assessed by an independent review team.• External commitments will be based on the JCL approved by the decision authority. Page 23
  24. 24. Baseline Policy• Commitment Baseline – Basis for commitments to OMB and Congress• Management Baseline – Basis for program/project execution and strategic management process reporting Page 24
  25. 25. Commitment Baseline Key Attributes• It is an integrated set of project requirements, cost, schedule, technical content, and agreed to JCL that forms the basis for NASA’s commitment to OMB and Congress.• It is established at the Key Decision Point (KDP) that initiates the Implementation Phase.• The Commitment Baseline is the only official NASA baseline for a project. Page 25
  26. 26. Unallocated Future Expenses (UFEs) Needed to understand Management BaselineUnallocated Future Expenses -The portion of estimated cost required to meetspecified JCL that cannot yet be allocated tothe specific project WBS sub-elements becausethe estimate includes probabilistic risks andspecific needs that are not known until theserisks are realized. Page 26
  27. 27. Unallocated Future Expenses (UFEs) (Cont.)• The term ‘UFE’ was established to make it clear that (based on experience) these funds are expected to be required to complete the project but cannot yet be allocated to a specific WBS activity. (The UFE concept is consistent with the non-deterministic nature of joint cost and schedule estimates based on probabilistic analysis.)• All UFE are included in the commitment baseline and the project’s budget. NOTE – The relationship of UFE to Commitment and Management Baselines is illustrated in an upcoming slide. Page 27
  28. 28. Management Baseline - Key Attributes• An integrated baseline (set of requirements, cost, schedule, technical content, and associated JCL) that forms the foundation for program/project execution• The Management Baseline is established at the Key Decision Point (KDP) that initiates the Implementation Phase as approved by the decision authority. Page 28
  29. 29. Management Baseline Key Attributes (cont.)• The program Management Baseline is the aggregate of the project Commitment Baselines plus program operating expenses. Similarly, the project Management Baseline equals the Commitment Baseline less any portion of UFE not released to the project for project execution. Page 29
  30. 30. Relationship of UFE to Project Commitment and Management Baselines This UFE is controlled byProject Commitment Baseline UFE the (External commitments) Program/MDProject Management Baseline (Project Execution) Project Manager Control Not to scale. Page 30
  31. 31. Program and Project Baselines Program Total Baseline Cost Operating Expense Program Management BaselineProject Management Baseline UFE Held by Project 2 Project Commitment Baseline UFE Held by Program Project -2 UFE Held by Project 1 UFE Held by Project 1 UFE Held by Project 2 Project -1 Project -1 Project -2 Program Page 31
  32. 32. Selected Policy Developments • Acquisition • Establishing the proper set of requirements • Space Flight and IT Baseline Policy Joint Confidence Level (JCL) Policy • Preview of NPR 7120.5 Rev EThe Rev E development is in its early stages.This preview should be viewed as both notional and pre-decisional. Page 32
  33. 33. Rev. E Development Charter• Build on the NID• Issue Rev. E before the expiration of the NID• Fully vet and resolve policy issues raised but not resolved during the NID development• Incorporate: – Any additional changes in NASA policy and practice, – Findings from OCE survey process and other audits – Lessons learned Page 33
  34. 34. Rev. E Development Charter (Cont.)• Ensure proper flow down from NPD1000.0A, and NPD 1000.5• Address inconsistencies among fundamental OCE documents. The primary focus will be on NPR 7120.5, NPD 7120.4, NPD 1000.5, and NPR 7123.1A. Page 34
  35. 35. Rev. E Development Working Groups• Life Cycle Review• Baseline Policy• JCL Clarify• Highly Specialized IT - Cover from PM’s perspective• NPR 7123 – NPR 7120.5 – Inconsistencies and review criteria• Requirements Relief – e.g., Batch processing• Ops and Program and Project Reviews – Streamline reviews• OSMA Issues – Misc. Page 35
  36. 36. Rev. E Development Life Cycle Review KDP B to KDP C Phase B(Preliminary Design and Technology Completion) Page 36
  37. 37. Current Project Life CycleArea of Focus - KDP B to KDP C Page 37
  38. 38. KDP B to KDP C Overview Implementation FormulationPhase A Phase B Phase C KDP KDP B Post Review C Reporting to DA Checkpoint to DA (If a significant change occurs or the PDR Readiness interval from the ILCR Assessment PDR-Based exceeds 6 months ) PDR ILCR Prerequisite for Technical Integrated review of locking down the baseline with programmatic date of the PDR cost, schedule, baselines integrated and ILCR and risk with technical information baseline updates Conduct IBRs P/p Center MD Not To Scale and update JCL Brief Brief Brief Periodic SRB Involvement as Appropriate This preview should be viewed as both notional and pre-decisional. Page 38
  39. 39. Single Project and Tightly Coupled Programs Implementation ProgramKDP KDP 1 Assessment of II plan to take Post Review Start of projects to KDP C Reporting to projects DA PDR ILCR Projects KDP C Readiness Checkpoint if significant change assessment or 6 months PDR ILCR Readiness Assessments and Checkpoints assessment PDR ILCR Post Review Reporting to DA Readiness assessment PDR ILCRNot To Scale This preview should be viewed as both notional and pre-decisional. Page 39
  40. 40. Rev. E Development ScheduleFirst Rev E development meeting – 10/09NID Expiration – 9/10 Page 40
  41. 41. Concluding Remarks• The intent of policy developments is to improve Agency performance.• If you view that the resulting processes do not add value … don’t just tolerate it… or worse yet ignore it…provide feedback to the office responsible. They want your feedback.• Get involved in your office/Center’s process for providing input during the policy development process. This input is highly valued. Page 41
  42. 42. Backup Page 42

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