Partnering to deliver an integrated programme at AWE Presented by AWE APM Thames Valley branch 23 November 2016 Bishopswood Golf Course, Tadley

1. © British Crown Owned Copyright 2016/AWE
Welcome

2. © British Crown Owned Copyright 2016/AWE
Partnering to deliver an
integrated programme at AWE
23 November 2016
An informative and interactive evening with the
Association of Project Management community
AWE.co.uk

3. © British Crown Owned Copyright 2016/AWE
Agenda
 Welcome and Introduction
 Joe Adams, AWE Director of Programme and Supply Chain Management
 Graeme Nicholson, AWE Director of Programme
 The Role of the Programme Management Office (PMO)
 Andrew Nicholson, AWE Head of Programme Management Office
 Programme Management Approach
 Steve Teasdale, AWE Head of Programme Performance Management
 Finance and Business Management Approach
 Jeff Maple, AWE Programme Business Controller and
Finance and Business Management
 Q&A
Helping our journey from good to great

4. © British Crown Owned Copyright 2016/AWE
Introduction to AWE
Graeme Nicholson

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Fast facts
 AWE has played a crucial role in national defence
and nuclear security for over 60 years
 We provide and maintain warheads for Trident to
ensure the UK continues to have a credible and
minimum nuclear deterrent
 We are a centre of excellence in science,
engineering and technology
 Using our unique nuclear skills and technical
expertise we develop and deliver national nuclear
security and counter-terrorism solutions for
UK government
 AWE is a Government-Owned Contractor-Operated
(GOCO) organisation operated by a joint venture
of Lockheed Martin, Serco and Jacobs Engineering on behalf of MOD
Underpinning continuous at sea deterrence and national nuclear security

6. © British Crown Owned Copyright 2016/AWE
Our sites
Aldermaston
(709 acres)
Fully nuclear licensed
Burghfield
(215 acres)
Fully nuclear licensed
Blacknest
(Five acres)
Coulport
Two nuclear licensed sites and a scientific support facility – approx. 5,500 employees

7. © British Crown Owned Copyright 2016/AWE
Our skills and expertise
AWE provides expertise to support the UK’s nuclear defence and national security

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Programme
and Project
Management
Joe Adams

9. © British Crown Owned Copyright 2016/AWE
The Role of the
Programme Management
Office (PMO)
Andrew Nicholson

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External environment
Election
2015
Strategic Defence and
Security Review 2015
Austerity drive
 Defence Reform Act 2014
 MOD customer confidence
 Customer budgetary
pressures
 Value proposition
Pressure on
public finances
 Cost-effective and
efficient solutions
 Innovative technical
activities to drive value
in the programme
 Structured flexibility
with customer
 Programme integration
Transforming our business into a Programme Management Office (PMO)

11. © British Crown Owned Copyright 2016/AWE
Moving to a Programme Management Office
 Delivering value for money
and best practice thus
increasing confidence
 Collaborative approach and
integration with customer
 Greater visibility and forward
looking
 Prioritisation, balancing
resources and strong culture
Getting to programme certainty and applying rigour and discipline
Infrastructure
investments Complex
and specialist
programme of
work
Legacy
culture
issues
Highly
regulated
Large
technical
breadth
Mature
matrix
organisation
Critical
resources
Budgetary
pressures
Inefficiencies
across
programme

12. © British Crown Owned Copyright 2016/AWE
Purpose and moving to a PMO
Transparency
Constructive
insight
Collaboration
Data
verification
Process
compliance
Intelligent
analysis
No surprise culture: collaborative working and transparent reporting

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PMO expectations
Working as a team for the benefit of the business
 Customer
 Shareholders
 AWE Capabilities, Services and Staff
Key operating principles are:
 Decisions are fact based, evidenced and communicated
 Good governance and best practice
 Culture of open communication
 Programme performance against business objectives
 Deliver our commitments and drive continuous improvement
 Change and configuration control
A shift in culture

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Programme Management
Approach
Steve Teasdale

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Partnering to deliver
 The Programme Management Function (PMF) was
established in 2013
 The PMF team is accountable for:
 Managing and developing AWE programme management skills
and capability
 Providing competent project managers to AWE programmes and projects
 Developing, integrating and implementing programme management processes
 Delivering programme management training including earned
value management
Delivering perfect programme performance in a complex technical environment

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Planning Improvement Team review
The PMF conducted a review of processes and their application
in 10 selected projects to determine readiness to implement an
Earned Value Management (EVM) system
* for illustrative
purposes only
Initiate
Plan
Deliver
Control
Process
Maturity Tracker
Low High
WBS
OBS
IMP
IMS
WAD
EVM
Starting our journey

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EVM maturity
 Opportunity for more consistent approach
to programme management:
 Work Authorisation
 Planning (IMP)
 Scheduling (IMS)
 Budgeting
 Project reporting and variance analysis
 An EVM system
 Identified need for earned value training * for illustrative purposes only
You can’t manage what you don’t measure, you can’t measure what you don’t plan

18. © British Crown Owned Copyright 2016/AWE
Benchmarking and key lessons
Review Learn Improve (RLI) activities
were conducted
 Go back to basics
 Programme control begins with a great plan
 You can’t manage what you don’t measure, you
can’t measure what you don’t plan
 Training is part of the solution
 Train as many people as you can
 Train from the top down
People deliver projects: you can’t change the process without supporting the people

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Infrastructure
investments
Technical
breadth
Changing the project processes
Different processes for different projects
Before – over 250 process documents
One set of processes for all projects
Now – fewer than 50 process documents
One
Project
Lifecycle
One
Reporting
Standard
One
Project Controls
Standard
One
Project Delivery
Standard
One
EVM System
One
set of PM
Processes
One
Training
Solution
One
Programme
Baseline
AWE
Programme
Performance
Management
Critical
resources
Legacy
culture
Highly
regulated
Matrix
organisation
Budgetary
pressures
Inefficiencies
across
programme
Complex
programme
From complexity to delivering with a common approach

20. © British Crown Owned Copyright 2016/AWE
Supporting the project people
Training needs analysis
Awareness training
Expert training
Practitioner training
(examined)
Over 1,000 trained
over two years:
AWE staff
contractors
customers
Training is creating the foundation for the solution

21. © British Crown Owned Copyright 2016/AWE
Partnering to deliver EVM outcomes
* for illustrative purposes only
Summary assessment (before)
* for illustrative purposes only
Summary assessment (now)
The projects we deliver are unique but the way we deliver projects is not

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Finance and Business
Management (F&BM) Approach
Jeff Maple
Spiral 1
ISS
FWC
Schedule
Cost
Resource
Forecast
Schedule
Cost
Resource
Forecast
Schedule
Cost
Resource
Forecast
Schedule
Cost
Resource
Forecast
Spiral 1 1.20 1.10 0.96 1.01
0.84 0.85 1.08 1.10 #
ISS
1.06 1.02 0.88 1.08 0.96 0.96 0.96 1.22
FWC
Approvals 0.84 0.85 1.27 0.99
0.80 0.70 1.10 0.86 #
Comp
Supp
0.99 1.07 1.01 1.07 0.97 1.02 1.01 1.08
Future
Tech
Manf
Uplift
0.92 0.66 0.65 0.12
0.78 0.64 0.55 0.14 #
AASH
&TLA
1.15 0.95 0.76 1.09 0.94 0.91 0.92 1.35
P3i - JTD
Prod Cert 1.53 1.56 1.04 1.02
0.87 1.01 1.33 1.01 #
P3i - Mk4a 1.00 4.72 4.87 1.00 0.00 0.00 0.00 0.00
Proj Mgt 1.00 1.25 1.24 10.90 1.00 1.55 1.48 17.95 #
Boat 4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
YTD
Month
YTD
Month
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Spiral 1 SPI/CPI Trend
SPI
CPI
Target
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
Apr-16
May-16
Jun-16
Jul-16
Aug-16
In ServiceSupport SPI/CPI Trend
SPI
CPI
Target
2.57
1.42
-6.00
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
SV
CV
SV/CVm
0.24
0.04
-6.00
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
SV
CV
SV/CVm

23. © British Crown Owned Copyright 2016/AWE
Artefacts – Framework
Business and Government Interactions
How and When (Structures, Organisations)
Integrated Master Schedule (IMS)
Basis of Estimate (BOE)
Organisation Breakdown Structure (OBS)
Work Breakdown Structure (WBS)
Responsibility Assignment Matrix (RAM)
What
Statement of Work
(SOW)
Integrated Master Plan
(IMP)
ProgrammePerformance
ManagementSystem
(PPMS)Standard
MDALs Government Furnished Assets (GFA) Requirements

24. © British Crown Owned Copyright 2016/AWE
Artefacts – Control accounts
A consistent structure to effectively manage the cost, schedule and scope

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Artefacts – Work Authorisation Document (WAD)
WADs capture the
following items:
 Work scope
 Budgets
 Period of performance
 Approvals
Commercial
PMO
Finance and
Business
Management
Control Account
Manager (CAM)
WADs define the scope of work between the CAM and the people doing the work

26. © British Crown Owned Copyright 2016/AWE
Change Management
 Commercial Change Control
 Change Control Board
 Programme Controls
Change Board
PMO integration of change management critical to programme success

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Business rhythm
Programme Delivery Review
Executive Committee Meeting
Site, capital and stockpile review
PMO Visual Management Board
Spiral 1 ISS FWC
Schedule
Cost
Resource
Forecast
Schedule
Cost
Resource
Forecast
Schedule
Cost
Resource
Forecast
Schedule
Cost
Resource
Forecast
Spiral 1 1.20 1.10 0.96 1.01 0.84 0.85 1.08 1.10 # ISS 1.06 1.02 0.88 1.08 0.96 0.96 0.96 1.22 FWC
Approvals 0.84 0.85 1.27 0.99 0.80 0.70 1.10 0.86 #
Comp
Supp 0.99 1.07 1.01 1.07 0.97 1.02 1.01 1.08
Future
Tech
Manf
Uplift 0.92 0.66 0.65 0.12 0.78 0.64 0.55 0.14 #
AASH
&TLA 1.15 0.95 0.76 1.09 0.94 0.91 0.92 1.35 P3i - JTD
Prod Cert 1.53 1.56 1.04 1.02 0.87 1.01 1.33 1.01 #
P3i - Mk4a 1.00 4.72 4.87 1.00 0.00 0.00 0.00 0.00
Proj Mgt 1.00 1.25 1.24 10.90 1.00 1.55 1.48 17.95 #
Boat 4 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
YTD Month YTD Month
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
Apr-16 May-16 Jun-16 Jul-16 Aug-16
Spiral 1 SPI/CPI Trend
SPI CPI Target
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
Apr-16 May-16 Jun-16 Jul-16 Aug-16
In Service Support SPI/CPI Trend
SPI CPI Target
2.57
1.42
-6.00
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
SV CV
SV/CVm
0.24 0.04
-6.00
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
SV CV
SV/CVm
Customer
Executive
Internal
OBS
Internal
PMO
Supporting a solid foundation

28. © British Crown Owned Copyright 2016/AWE
Compliance assurance
 Internal Surveillance Review
 Initial Baseline Review
Reviewing performance to ensure quality delivery

29. © British Crown Owned Copyright 2016/AWE
Summary
Partnering to deliver an integrated programme at AWE
On our journey from good to great!

30. © British Crown Owned Copyright 2016/AWE
Q&A
AWE.co.uk
email: pmo@awe.co.uk
We would like to hear from you - please help us on our journey!

31. © British Crown Owned Copyright 2016/AWE

32. This presentation was delivered
at an APM event
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upcoming events please visit our
website www.apm.org.uk/events