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Deliverables based planning handbook

  1. 1. Niwot Ridge, LLC DELIVERABLES BASED PLANNING® Principles and Practices that increase the Probability of Program Success (PoPS). V8.3.a 12/23/20
  2. 2. 2 DBP
  3. 3. Chapter Title Page Chapter 0 Deliverables Based Planning in a Nutshell 5 Chapter I Principles and Practices of Deliverables Based Planning® 45 Chapter II The 10 Principles of Deliverables Based Planning® 55 Chapter III Deploying Deliverables Based Planning® 79 Chapter IV Process 1.0 – Identify Needed Systems Capabilities 87 Chapter V Process 2.0 – Establish the Requirements Baseline 97 Chapter VI Process 3.0 – Establish the Performance Measurement Baseline 107 Chapter VII Process 4.0 – Execute the Performance Measurement Baseline 117 Chapter VIII Process 5.0 – Continuous Risk Management 127 Chapter IX Graded Application of Deliverables Based Planning® 147 Chapter X Tools and Artifacts used in Deliverables Based Planning® 159 Append A References for each Chapter 207 Table of Contents 3 Deliverables Based Planning ® is a registered trademark of Niwot Ridge LLC,
  4. 4. DBP4
  5. 5. Deliverables Based Planning® integrates five critical program management principles with: § Cost, § Schedule, and § Technical Performance Measures, … assuring actionable information is provided to the decision makers to increase the probability of program success. 5 0Deliverables Based Planning® in a Nutshell Chapter
  6. 6. Deliverables Based Planning® In A Nutshell Increasing Your Probability of Success(sm) Chapter 06
  7. 7. Why Deliverables Based Planning®? ¨ The customer bought capabilities to fulfill the mission:† ¤ Not the work effort, ¤ Not the cost expenditures, and, ¤ Not, the documentation, test results, or the work processes. ¨ All successful programs deliver tangible beneficial outcomes, defined in units of measure meaningful to the decision makers. Deliverables Based Planning® † Mission defines the fundamental purpose of an organization or an enterprise, and states why it exists and what it does to achieve its Vision. 7 Chapter0
  8. 8. 1. What Does DONE Look Like? 2. How Do We Get There? 3. Is There Enough Time, Resources, And Money To Get There? 4. What Impediments Will Be Encountered Along The Way? 5. What Are The Units Of Measures For Progress To Plan? All Successful Projects Must Know The Answer To 5 Questions 8Lewis & Fowler, Copyright © 2011
  9. 9. 11 Critical Practices Needed to Answer the 5 Questions of Project Success 9 ¨ Define the Work Breakdown Structure(WBS). ¨ Indentify the Organizational Breakdown Structure (OBS). ¨ Integrate the WBS and OBS. ¨Organization ¨ Schedule the work. ¨ Identify the Products and Milestones. ¨ Set the time phased budget. Planning and Budgeting ¨ Record direct costs. Accounting ¨ Determine variances. ¨ Sum Data and variances. ¨ Manage action plans. Performance Analysis ¨ Incorporate Changes. Revision Management Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011 Chapter0
  10. 10. Credible Data Is Need to Increase The Probability Of Program Success ¨ Concept of Operations (ConOps) ¨ Operational Scenarios and Use Cases ¨ Integrated Master Plan (IMP) ¨ Value Stream Maps (VSM) ¨ Key Performance Parameters (KPP) ¨ Measures of Effectiveness (MoE) ¨ Program Planning and Controls (PP&C) ¨ Integrated Master Schedule (IMS) ¨ Work Packages (WP) and Planning Packages (PP) ¨ Earned Value Management (EVM) ¨ Technical and Programmatic Risk Management (RM) ¨ Measures of Performance (MoP) ¨ Estimate At Completion (EAC) ¨ Estimate To Complete (ETC) ¨ To Complete Performance Index (TCPI) ¨ Independent Estimate At Completion (IEAC) ¨ Technical Performance Measures (TPM) 10 Chapter0
  11. 11. Systems Management Guides the Conversion of this Data to Actionable Information ¨ Systems Management is the set of organizational structures and processes that rapidly deliver dependable technological outcomes within a predictable time and budget. ¨ Complexity in large scale systems is not driven by the scale, but rather by the heterogeneity of the components and their individual underlying complexity. ¨ Managing the complex individual components, their interactions, their cost, schedule, and technical performance elements is the role of Systems Management. ¨ DBP® connects the data to provide actionable information to the decision makers. 11 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011 Chapter0
  12. 12. 16 Program Management Processes 12 Program Enablers Program Process Capabilities Business Enablers Chapter0
  13. 13. Origins of Deliverables Based Planning® 13 ¨ This planning in the large. ¨ This is planning in the presence of change. ¨ The focus is on transformational outcomes. ¨ Capabilities start with a mission level analysis. www.rand.org Chapter0
  14. 14. Deliverables Based Planning® Answers 4+1 Questions Needed for Success Lewis & Fowler’s Deliverables Based Planning® integrates five critical program management process areas with – Cost, Schedule, and Technical Performance Measures. The inclusion of Technical Performance Measures (TPM) separates our approach from conventional methods based solely on managing cost and schedule. In conventional approaches, the cost and schedule baseline and their variances generate the data for Earned Value variables that are used to make programmatic decisions. In Deliverables Based Planning®, Earned Value measures are integrated with measures of Physical Percent Complete (PPC) derived from Technical Performance Measures (TPM) at planned assessment points in the Integrated Master Schedule (IMS). The Events and Milestones define in the Integrated Master Plan (IMP) describe the planned technical or operational maturity of the products or services measured against their actual technical performance. The Earned Value measurements are used with Technical Performance measures for each deliverable to produce a credible measure of progress and a credible forecast of future performance using the To Complete Performance Index (TCPI). The result is increased visibility and credibility of the Independent Estimate at Completion (IEAC). As the program progresses, technical and programmatic risks are identified, their mitigation or retirement planned and executed, and adjustments to the program made to assure planned progress is maintained. Successfully executing a program requires a Program Planning and Controls discipline that identifies what “Done” looks like, measures progress toward “Done,” identifies the risks and impediments to reaching “Done,” and assures timely corrective action to maintain progress toward “Done.” “Done” is always defined in units of measure meaningful to the customer. The best tangible evidence are the Deliverables needed to meet the requirements that fulfill the system’s requested capabilities that are recognized as success for the program. Using this approach, Deliverables fulfill the requirements that meet the system or business performance criteria, produced at the planned time, using the planned budget. This performance is measured as Physical Percent Complete and is the only Credible measurement of progress. With the planned requirements fulfilled, the system or operational capabilities become available to the customer at the planned time. 14 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011 Chapter0
  15. 15. The 4+1 Questions Every Project Must Answer to be Successful Capabilities Requirements Plans Execution 2. What technical and operational requirements are needed to deliver these capabilities? 1. What capabilities are needed to fulfill the Concept of Operations†, the Mission and Vision, or the Business System Requirements? 3. What schedule delivers the product or services on time to meet the requirements? 4. What periodic measures of physical percent complete assure progress to plan? What impediments to success, their mitigations, retirement plans, or “buy downs are in place to increase the probability of success?” + Continuous Risk Management † A Concept of Operations (ConOps) describes the characteristics of a system from the point of view of an individual who will use that system. It is used to communicate the quantitative and qualitative system characteristics to all stakeholders. Œ  Ž   Chapter 015
  16. 16. Deliverables Based Planning® Addresses … Project Management Case Study, Pierre Bonnal, CNAM IIM MBA Program, June 2004 16 Chapter0
  17. 17. Identify Needed Capabilities Establish a Performance Measurement Baseline Execute the Performance Measurement Baseline Capabilities Based Plan Operational Needs Earned Value Performance 0% /100% Technical Performance Measures System Value Stream Technical Requirements Identify Requirements Baseline Technical Performance Measures PMB Changes to Needed Capabilities Changes to Requirements Baseline Changes to Performance Baseline Œ  Ž   Chapter 017 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  18. 18. Increasing the Maturity of Project Deliverables 1. Identify Needed Capabilities to achieve program objectives or the particular end state. Define these capabilities through scenarios from the customer point of view in units of Measure of Effectiveness (MoE) meaningful to the customer. 2. Define The Technical And Operational Requirements that must be fulfilled for the system capabilities to be available to the customer at the planned time. Define these requirements in terms that are isolated from any implementation technical products or processes. Only then bind the requirements with technology. 3. Establish The Performance Measurement Baseline describing the work to be performed, the budgeted cost for this work, the organizational elements that produce the deliverables from this work, and the Measures of Performance (MoP) showing this work is proceeding according to cost, schedule, and technical performance. 4. Execute the PMB’s Work Packages in the planned order, assuring all performance assessment are 0%/100% complete before proceeding. No rework, no forward transfer of activities to the future. Assure every requirement is traceable to work and all work is traceable to requirements. 5. Perform Continuous Risk Management for each Deliverables Based Planning® process area to Identify, Analyze, Plan, Track, Control, and Communicate programmatic and technical risk. The integration of these five process areas is the foundation of Deliverables Based Planning® . Each process area stands alone and at the same time is coupled with the other process areas. Each process area contains specific process steps for producing beneficial outcomes to the project, while establishing the basis for overall project success. Each process can be developed to the level needed for specific projects. All five process areas are critical to the success of any project. If a process area is missing or poorly developed, the capability to manage the project will be jeopardized, possibly in way not know until the project is too far along to be recovered. Each process provides information needed to make decisions about the flow of the project. This actionable information is the feedback mechanism needed to keep a project under control. These control processes are not impediments of progress of the tools needed to increase the probability of success. Chapter0 18 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  19. 19. Increasing the Maturity of Project Deliverables Identify Needed Capabilities Indentify Baseline Requirements Establish Performance Measurement Baseline Execute Performance Measurement Baseline §Define Capabilities §Define ConOps §Assess Needs, Cost, and Risk §Defined Balanced and Feasible Alternatives §Fact Finding §Gather And Classify §Evaluate And Rationalize §Prioritize §Integrate And Validate §Decompose Scope §Assign Accountability §Arrange Work §Develop BCWS §Assign Performance §Perform Work §Accumulate Performance §Analyze Performance §Take Corrective Action Continuous Risk Management (CRM) Define the Measurable Capability Outcomes Assure All Requirements Are Met In Support of Capabilities Define Measures of Performance and Effectiveness Ensure Cost, Schedule, and Technical Performance Chapter0 19
  20. 20. What is a Deliverable? Project Management Case Study, Pierre Bonnal, CNAM IIM MBA Program, June 2004. Chapter0 20
  21. 21. Define the set of capabilities needed to achieve the project objectives or the particular end state for a specific scenario. Using the Concept of Operations (ConOps), define the details of who, where, and how this capability is to be accomplished, employed, and executed. Œ Define the technical and operational requirements for the system capabilities to be fulfilled. First, define these requirements in terms isolated from any implementation details. Only then bind the requirements with technology.  Build a time–phased network of work activities describing the work to be performed, the budgeted cost for this work, the organizational elements that produce the deliverables, and the performance measures showing this work is proceeding according to plan. Ž Execute work activities, while assuring all performance assessment represent 100% completion before proceeding. This means – No rework, no forward transfer of activities to the future. Assure all requirements are traceable to work & all work is traceable to requirements.  Apply the processes of Continuous Risk Management for each Deliverables Based Planning® process area to: Identify, Analyze, Plan, Track, Control, and Communicate programmatic and technical risk.  Chapter 021 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  22. 22. §Partition system capabilities into classes of service within operational scenarios. §Connect the capabilities to system requirements using some visual modeling notation. §Define Measures of Effectiveness (MoE) and Measures of Performance (MoP). §Define the delivery schedule for each measure of performance and effectiveness. §Define scenarios for each system capability. §Connect these scenarios to a Value Stream Map of the increasing maturity of the program. §Assess value flow through the map for each needed capability. §Identify capability mismatches and make corrections to improve overall value flow. §Assign costs to each system element using a value flow model. §Assure risk, probabilistic cost and benefit performance attributes are defined. §Use cost, schedule and technical performance probabilistic models to forecast potential risks to program performance. §Make tradeoffs that connect cost, schedule, and technical performance in a single location that compares the tradeoffs and their impacts. §Use Measures of Effectiveness (MoE) and Measures of Performance (MoP) for these alternative tradeoffs. Define the capabilities needed to achieve the desired objectives or a particular end state for a specific scenario. Define the details of who, where, and how these capabilities are to be accomplished, employed, and executed. 1.1 1.2 1.3 1.4 Œ Chapter 022
  23. 23. What Does A Capability “Sound” Like? Chapter0 23
  24. 24. Identifying Needed System Capabilities Identifying System Capabilities is the starting point for any successful program. Systems Capabilities are not direct requirements, but a statements of what the system should provide in terms of “abilities.” For example there are three capabilities needed for the Hubble Robotic Servicing Mission: 1. Do no harm to the telescope. 2. Change the Wide Field Camera. 3. Connect the battery umbilical cable. How is this to be done and what are the technical, operational, safety and mission assurance requirements? Don’t really know yet, but the Capabilities guide their development. The critical reason for starting with capabilities is to establish a home for all the requirements. To answer the question “why is this requirement present?” “Why is this requirement needed?” “What business or mission value does fulfilling this requirement provide?” Capabilities statement can then be used to define the units of measure for program progress. Measuring progress with physical percent complete at each level is mandatory. But measuring how the Capabilities are being fulfilled is most meaningful to the customer. The “meaningful to the customer” unit of measures are critical to the success of any program. Without these measures the program may be cost, schedule, and technically successful but fail to fulfill the mission. The process flow to the right is the starting point for Identifying the Needed Capabilities and determining their priorities. Starting with the Capabilities prevents the “Bottom Up” requirements gathering process from producing a “list” of requirements – all needed – that is missing a well formed topology. This Requirements Architecture is no different than the Technical or Programmatic architecture of the system. Capabilities Based Planning (CBP) focuses on “outputs” rather than “inputs.” These “outputs” are the mission capabilities that fulfilled by the program. In order to fulfill these capabilities, requirements need to be met. But we need the capabilities first. Without the capabilities, it is never clear the mission will be a success, because there is no clear and concise description of what success means. The concept of CBP recognizes the interdependence of systems, strategy organization, and support in delivering the capability, and the need to examine options and trade‒offs in terms of performance, cost and risk to identify optimum development investments. CBP relies on scenarios to provide the context to measure the level of capability. 24 Chapter0
  25. 25. What Should We Do? Where Are We Now? Identifying Needed System Capabilities Abstracted from: “Capabilities‒Based Planning – How It Is Intended To Work And Challenges To Its Successful Implementation,” Col. Stephen K. Walker, United States Army, U. S. Army War College, March 2005 Identifying Needed System Capabilities 25 Chapter0
  26. 26. §Produce an overall statement of the problem in the operational context. §Develop the overall operational and technical objectives of the target system. §Defined the boundaries and interfaces of the target system. §Gather required system capabilities, functional, nonfunctional and environmental requirements, and design constraints. §Build the Top Down capabilities and functional decomposition of the requirements in a Requirements Management System. §Answer the question “why do I need this?” in terms of operational capabilities. §Build a cost / benefit model using probabilistic assessment of all variables, their dependencies, and impacts. §For all requirements, perform a risk assessment to cost and schedule. §Determine criticality for the functions of the system. §Determine trade off relationships for all requirements to be used when option decisions must be made. §For all technical items, prioritize their cost and dependency. §Address the completeness of requirements by removing all “TBD” items. §Validate that the requirements are traceable to system capabilities, goals, and mission. §Resolve any requirements inconsistencies and conflicts. Define the technical and operational requirements that must be present for the system capabilities to be delivered. Define these requirements in terms isolated from any technology or implementation. Assure each requirement is connected to a need system capability. 2.1 2.2 2.3 2.4 2.5  Chapter 026
  27. 27. What Is a Requirement? 27 Chapter0
  28. 28. Identifying Requirements Requirements are the necessary attributes defined for an item prior to the efforts to develop a design for the item. System requirements analysis is a structured, or organized, methodology for identifying an appropriate set of resources to satisfy a system need (the needed capabilities) and the requirements for those resources that provide a sound basis for the design or selection of those resources. It acts as the transformation between the customer’s system needs and the design concept implemented by the organization’s engineering resources. The requirements process decomposes a statement of the customer need through a systematic exposition of what that system must do to satisfy that need. This need is the ultimate system requirement which all other requirements and designs flow. There are two fundamental classes of requirements. § Process Performance Requirements § Product Performance Requirements The Process Performance Requirements define how the work processes are used to produce a beneficial outcome to the customer. The Product Performance Requirements define the product specifications and how they are related to the process requirements. As well as the product and process requirements, there are functional and non‒functional requirements. These non‒functional requirements play a significant role in the development of the system. Non‒functional requirements are spread across the entire system or within individual services and cannot be allocated to one specific software artifact (e.g., class, package, component). This makes them more difficult to handle than functional requirements. The specifics of the system’s architecture, such as highly distributed services bring up additional difficulties. The distinction between process and product requirements lays the foundation for the Work Breakdown Structure. The WBS, the Related Integrated Master Plan (IMP) and Integrated Master Schedule (IMS), also focus on this separation. The success of the project or program depends on defining both the product and the processes that support or implement the product. When properly connected, the Requirements Taxonomy, the Work Breakdown Structure, the IMP and the IMS “foot and tied” to the Performance Measurement Baseline (PMB) provides the traceability of the increasing maturity of the deliverables (vertical) and the physical percent complete of the work efforts (horizontal). 28 Chapter0
  29. 29. Identifying Requirements† †Systems Requirements Practices, Jeffery O. Grady, McGraw Hill, 1993 29 Chapter0
  30. 30. Build a time–phased network of activities describing the work to be performed, the budgeted cost for this work, the organizational elements that produce the deliverables from this work, and the performance measures showing this work is proceeding according to plan. Decompose the program Scope into a product based Work Breakdown Structure (WBS), then further into Work Packages describing the production of the deliverables traceable to the requirements, and to the needed capabilities. 3.1 Assign responsibility to Work Packages (the groupings of deliverables) to a named owner accountable for the management of the resource allocations, cost and schedule baseline, and technical delivery. 3.2 Arrange the Work Packages in a logical network with defined deliverables, milestones, internal and external dependencies, with credible schedule, cost, and technical performance margins. 3.3 Develop the Time–Phased Budgeted Cost for Work Scheduled (BCWS) for the labor and material costs in each Work Package and the Project as a whole. Assure proper resource allocations can be met and budget profiles match expectations of the program sponsor 3.4 Assign objective Measures of Performance (MoP) and Measures of Effectiveness (MoE) for each Work Package and summarize these for the Project as a whole. 3.5 Establish a Performance Measurement Baseline (PMB) used to forecast the Work Package and Project ongoing and completion cost and schedule performance metrics. 3.6 Ž Chapter 030
  31. 31. What Does a Credible Plan and Schedule Look Like? 31 Chapter0
  32. 32. Establishing the Three Elements of the Performance Measurement Baseline The Performance Measurement Baseline (PMB) is the primary assessment document for assuring the credibility of a program plan. The PMB is the baseline of the cost, schedule and deliverables for each Work Package in the plan. Constructing the PMB requires knowledge of the business requirements, skill in developing the Work Packages that produce the deliverables for these requirements, and discipline in assembling the cost, schedule and relationships between the Work Packages. It is the discipline that requires the most focus for the planners and program controls staff. Without this discipline, the development of a credible baseline is simply not possible. In the end the planners and program controls staff must “know” in intimate detail each Work Package, its deliverables and resource requirements, the performance measurement criteria and the dependencies that form the critical path through the program schedule. The concept of a Deliverables Based Plan (DBP) is at the core of the Performance Measurement Baseline (PMB). § Deliverables are the units of measure of progress to plan. § Deliverables are what the customer has paid money for. § Deliverables contain the business capabilities, the associated value that fulfill the requirements of the business plan. The Technical Performance Baseline is the requirements flow down and traceability map for each deliverables in the program. § A critical performance measure of the Technical Performance Baseline is the stability of requirements. The expected technical achievement for the actual progress is compared using periodic measurements or tests starts with the Technical Performance Baseline. § An important aspect of the Technical Performance Baseline is to define the units of measures for each deliverable that defines what “done” looks like at each incremental assessment of maturity. The Schedule Performance Baseline is the sequence of Work Packages and Planning Packages that produce the products or services from the program. This baseline contains the schedule margin derived from the Monte Carlo simulation described in DID 81650. The Cost Performance Baseline is the “authorized time‒phased budget‒at‒completion (BAC) used to measure, monitor, and control overall cost performance on the program.” This budget (BCWS) is held in the Control Accounts, the Work Packages and Planning Packages owned by the Control Account Manager. 32 Chapter0
  33. 33. Establishing the Three Elements of the Performance Measurement Baseline Cost Baseline Schedule Baseline Technical Baseline Perform Functional Analysis Determine Scope and Approach Develop Technical Logic Develop Technical Baseline Develop WBS Define Activities Estimate Time Durations Sequence Activities Finalize Schedule Identify Apportioned Milestones Determine Resource Requirements Prepare Cost Estimate Resource Load Schedule Finalize Apportioned Milestones Determine Funding Constraints Approve PMB 33 Chapter0
  34. 34. Execute the planned work, assuring all work is 100% complete before proceeding to the next planned work package. No rework, no forward transfer of activities or features. Assure every requirement is traceable to work and all work is traceable to requirements. § Using the Work Package sequencing, release work to be performed as planned. § With the responsibility assignments, identify the accountable delivery manager to guide the development of the products or services for each Work Package. 4.1 § Using Physical Percent Complete or Apportioned Milestones, capture measures of progress to plan for each Work Package. § Report this Physical Percent Complete in a centralized database for each Work Package and the program as a whole. 4.2 § Compare the Physical Percent Complete against the Planned Percent Complete for each period of performance. § Construct cost and schedule performance indices from this information and the Physical Percent complete measures. 4.3 § With Cost and Schedule performance indices, construct a forecast of future performance of cost, schedule, and technical performance compliance. § Take management actions for any Work Packages not performing as planned. 4.4 § Record past performance based on Work Package completion criteria. § Record past future forecast performance estimates in a historical database. § Forecast next future performance estimate against the Performance Measurement Baseline. § Report this next future performance estimate to the program stakeholders. 4.5  Chapter 034
  35. 35. How Do We Know We Are Making Progress to Plan? 35 Chapter0
  36. 36. Executing the Performance Measurement Baseline With the Performance Measurement Baseline established, its execution becomes critically important. The execution process is called the “program rhythm.” this means the processes are performed in a repeated manner – at least on a monthly basis and many times on a weekly basis. This business rhythm must create actionable information for the program manager on a time scale that actually allows actions to be taken. For Government programs this time scale is at a minimum once a month – the Contract Performance Report – in the form of DI‒MGMT‒81466A. A larger question must be answered though. How long is the Program Manager willing to wait before she discovers she is late? Waiting one month seems risky. Many programs have weekly status reviews which answer the question “where are we in terms of progress to plan?” In the Deliverables Based Planning method, the measure of this “progress to plan” is provided by the tangible physical deliverables from the work efforts. These tangible, physical deliverables must be defined in the work packaged created during the Planning process of Deliverables Based Planning. The measures of physical percent complete can be applied on weekly boundaries in a variety if ways: 1. To actually have weekly deliverables. 2. Have apportioned milestones for each week. 3. Have tasks that are one week long and record 0%/100% complete at the end of each week. In all cases, a measure of physical percent complete is mandatory if the program manager is to receive actionable information. The important process here is to have an agreed on measure of performance that is defined before the work starts. Keep these measures and the work efforts that produce to “fine grained” durations. Focus on answering the question How long are we willing to wait before we find out we’re late? The answer to this question must be short enough to take corrective action so you are in fact not late. 36 Chapter0
  37. 37. Executing the Performance Measurement Baseline (PMB) 37 Chapter0
  38. 38. § Identify and classify risks in a Risk Register. § Manage this Risk Register through a Risk Management Board. § Connect these risks and their handling in the Master Schedule. § Convert risk data into risk decision‒making information. § Use this analysis information as the decision basis for the program manager to work on the “right” risks. § Turn risk information into decisions and actions (both present and future). § Develop actions to address individual risks, prioritize risk actions, and create an integrated risk management plan. § Monitor the status of risks and actions taken to ameliorate risks. § Identify and monitor risks to enable the evaluation of the status of risks themselves and of risk mitigation plans. § Risk communication lies at the center of the model to emphasize both its pervasiveness and its criticality. § Without effective communication, no risk management approach can be viable. Continuous Risk Management starts the underlying principles, concepts, and functions of risk management and provides guidance on how to implement risk management as a continuous practice in programs and the organizations that management programs. 5.1 5.2 5.3 5.4 5.5  Chapter 038
  39. 39. Analyze Plan Track Control Identify Risks, Issues, and Concerns Evaluate, classify, and prioritize risks Decide what should be done about each risk Monitor risk metrics and verify/validate mitigations Make risk decisions Subproject and partner data/constraints, hazard analysis, FMEA, FTA, etc. Risk data: test data, expert opinion, hazard analysis, FMEA, FTA, lessons learned, technical analysis Resources Replan Mitigation Program/project data (metrics information) Statement of Risk Risk classification, Likelihood Consequence, Timeframe Risk prioritization Research, Watch (tracking requirements) Acceptance Rationale, Mitigation Plans Risk status reports on: Risks Risk Mitigation Plans Close or Accept Risks Invoke contingency plans Continue to track Perform Continuous Risk Management 39 Chapter0
  40. 40. Chapter 040 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  41. 41. Chapter 041 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  42. 42. 4+1Critical Success Processes Capabilities, Requirements & Deliverables Program Architecture & Dependencies Work Planning and Sequencing Performance Measurement Baseline Programmatic & Technical Risk Management §Balanced Scorecard §Aligned Organization Strategy §Integrated Master Plan (IMP) §Gaps §Overlaps §Interfaces §Integrated Master Schedule (IMS) §Cost And Schedule Baseline §WBS, RAM, Resource Loaded IMS §Risk Registry §Risk Handling Plans §Contingency And Management Reserve §Requirements Traceability §Value Stream Mapping §Work Packages §Planning Packages §Technical Performance Measures (TPM) §Risk Integrated With IMS §Risk Trending §Measures Of Effectiveness (MoE) §Design Structure Matrix (DSM) §Earned Value Management §Measures Of Performance (MoP) §Monte Carlo Simulation 42 Chapter0
  43. 43. Program Support Services Business Process Reengineering Balanced Scorecard Organizational Change Management DCMA Compliance DCAA Compliance § Michael Hammer trained reengineering processes § Program governance scorecard § Integrated Project Team development § Earned Value Management System Deployment § Cost Accounting Standard (CAS) system deployment § Project Management process improvement § Program performance dashboards § Performance management training § EVM System Description development and application § Integration of the EV Engine with a CAS compliant accounting system § Value stream mapping § Strategic management connected with execution § Measurable Process improvement § EVMS Validation preparation § DCAA and DCMA compliance of EVMS 43 Chapter0
  44. 44. Benefits of Deliverables Based Planning® DBP® Capability Benefits to the Customer Program, Planning, and Controls Rapid creation of the risk adjusted Performance Measurement Baseline. Earned Value Management ANSI‒748B compliant processes, tools, and training. Programmatic and Technical Risk Management Credible integrated risk management process guided by DoD, DOE, AACE, and PMI standards. Management Process Improvement Value focused organizational change management. Program Performance Assessment Unbiased External Independent Reviews (EIR). Proposal support – Management Volume IMP/IMS, Basis of Estimate (BoE), and Risk sections. 44 Chapter0
  45. 45. Deliverables Based Planning® Puts You On the Road to Success … Where are we going? How do we get there? Are there enough resources? What are impediments to progress? How do we measure progress? Chapter 045 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  46. 46. Chapter 046 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  47. 47. The10 Organizing Principles of Deliverables Based Planning® guide the application of the 5 Practice Areas in this handbook. These principles define the reasons for each practice, connect each practice to a beneficial outcome, and integrate the processes into a seamless delivery system. 47 IConnecting Principles With Practice Chapter
  48. 48. The 10 Organizing Principles of Deliverables Based Planning® Principles are the source of guidance for the Deliverables Based Planning® Practices. A principle is a “general truth, a law on which other are founded or from which others are derived.” [Webster] For the principles of program and project management to be effective they must : § Express a basic concept § Be universally applicable § Be capable of straightforward expression § Be self evident The 10 Principles of Deliverables Based Planning® guide the application of the four process areas. These principles encompass the entire life cycle of a project or program, from inception and the discovery of the business or system capabilities, through requirements elicitation, to the creation of the Performance Measurement Baseline (PMB), to the execution of this baseline. The principles of Deliverables Based Planning® provide several feedback loops to assure that subsequent activities provide measurable information to correct gaps that exist in the previous activities. This iterative and incremental approach to program management assures the periods of assessment for corrective actions are appropriately spaced to minimize risk while maximizing the delivered value to the program. Deliverables Based Planning® can be the basis of conventional as well as Lean program management methods. The illustration the next page are the 10 Principles of Deliverables Based Planning®. Each principle is developed in detail later in this handbook. For now understanding the dependencies between the principles is important. Information produced by the practices derived from the principles must be done in a sequential manner. This is not a “waterfall” approach, but rather an incremental elicitation of the information needed to successfully manage the program. Skipping forward in the sequence of principle, creates systemic risk for both the programmatic and technical elements of the program. 48 ChapterI
  49. 49. The 10 Organizing Principles of Deliverables Based Planning® Assess the capabilities being provided through the deliverables Fulfill the requirements through effort held in the Work Packages Produce deliverables from Work Packages Planned BCWS Physical % Complete WP’s contain deliverables that fulfill requirements Capabilities topology defines requirements flow down WP flow must describe the increasing maturity of the product or service Producing the deliverables in the planned sequence maintains the value stream to the customer ChapterI 49
  50. 50. The 5 Process Areas of Deliverables Based Planning® Five core process form the basis of Deliverables Based Planning® . These processes represent a sequence of activities that increase the maturity of the programmatic aspects of a project or program. The plans that result from these efforts describe the increasing maturity of the product or services that are the deliverables from the program. In order to develop and execute a Plan, a set of requirements is needed. Before these requirements can be developed, an understanding of the system capabilities should be developed. 1. Identify Needed System Capabilities ‒ Define the set of capabilities (business, operational, or technical) needed to achieve the program objectives or a particular end state for a specific scenario using the Concept of Operations (ConOps). CONOPs is a verbal or graphic statement, in broad outline, of an assumption or intent in regard to an operation or series of operations, mission, or system. 2. Establish Requirements Baseline – defines the technical, organizational, and operational requirements that must be in place for the system capabilities to be fulfilled. Define these requirements in terms isolated from the implementation details. Only then, bind these requirements with the technical alternatives. 3. Establish Performance Measurement Baseline – build a time‒phased network of scheduled activities describing the work to be performed, the budgeted cost for this work, and the organizational elements that produce the deliverables from this work. Define the technical performance measures showing how this work proceeds according to the technical and programmatic plan. 4. Execute the Performance Measurement Baseline – execute the Performance Measurement Baseline Work Packages, while assuring all performance assessments represent measures of Physical Percent Complete. 5. Continuous Risk Management – identify, plan, and budget risk mitigation or retirement activities at assure impediments to progress are handled. These five process areas must all be present in some form, for program success. To skip any process area, or performance the process area out of order Capabilities, Requirements, Baseline, and Execution, with Continuous Risk Management lays the foundation for a Troubled Project. Each process area builds on the previous area to increase the fidelity of the actionable information needed by the decision makers. This method is independent of any specific development of engineering process – iterative, incremental, and linear processes are all equally effective ChapterI 50 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  51. 51. The 5 Process Areas of Deliverables Based Planning®10OrganizingPrinciplesofDeliverablesBasedPlanning® Chapter I 5 Identify Needed Capabilities Establish a Performance Measurement Baseline Execute the Performance Measurement Baseline Capabilities Based Plan Operational Needs Earned Value Performance 0% /100% Technical Performance Measures Business or Mission Value Stream Technical Requirements Identify Requirements Baseline Technical Performance Measures PMB Changes to Needed Capabilities Changes to Requirements Baseline Changes to Performance Baseline Œ  Ž   Chapter I51
  52. 52. Deliverables Based Planning® Processes Deliverables Based Planning® is a comprehensive approach to managing cost, schedule, and technical performance of programs and projects by assessing the interaction between programmatic and technical processes. The method starts by capturing the technical and operational needs of the proposed system. These are stated in a Concept of Operations describing how the system operates, how it fulfills the stated mission, what major components comprise the system, and how they interact with each other. From the capabilities description of the Concept of Operation, technical and operational requirements are elicited. These requirements define the development progress of the deliverables captured in the Performance Measurement Baseline (PMB). This PMB is constructed from a collection of Work Packages, arranged in a logical network describing the increasing maturity of the products or services needed to deliver the stated capabilities. Measures of physical percent complete are used for each Work Package and the deliverables they produce. Deliverables Based Planning® is a Systems Engineering approach to program and project management [INCOSE], [Stevens]. This method incorporates all three aspects of a program performance measurement process – Cost, Schedule, and Technical Performance Measures (TPM). The inclusion of the TPMs distinguishes the Lewis & Fowler Deliverables Based Planning® from more conventional approaches to Program, Planning, and Controls. In conventional approaches, the cost and schedule baseline and the variances generate the values for Earned Value. In the Deliverables Based Planning® method, measures of Physical Percent Complete are derived from pre–defined targets of Technical Performance. The Earned Value variables are augmented with adjustments from the Technical Performance compliance for each deliverable to produce a true assessment of progress. Technical Performance Measures integrate technical achievement with earned value using risk assessments that provides a robust program management tool to identify early technical and programmatic disruptions to a program. [Pisano] TPMs: Provide an integrated view across all programmatic and technical elements. Support distributed empowerment implicit in the IPT approach, through interface definitions. Logically organizes data resulting from systems engineering, risk management, and earned value processes. Provide a "real time" indication of contract performance and future cost and schedule risk. Support the development of systems thinking within an integrated program model focused on the interface definitions. ChapterI 52 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  53. 53. Deliverables Based Planning® Processes ChapterI 53 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  54. 54. 1. Identify Needed Systems Capabilities – Define the Measures of Effectiveness (MoE) Deliverables Based Planning® DEFINE OPERATIONAL CONCEPTS THROUGH SCENARIOS OR USE CASES Partition system capabilities into classes of service within operational scenarios Connect capabilities to system requirements using sysML Define Measures of Effectiveness (MoE) for these capabilities in units meaningful to the customer Define in the master schedule the achievement of measure of Technical Performance DEFINE CAPABILITIES NEEDED TO IMPLEMENT THE OPERATIONAL CONCEPTS Define scenarios for each system capability Connect these scenarios to the Value Stream map Assess value flow through the map for each needed capability Identify capability mismatches and make corrections to improve overall value flow ASSESS NEEDS, COST, AND RISK SIMULTANEOUSLY Assign costs to each system element using a value process model Assure risk, probabilistic cost and benefit performance attributes are defined Use cost, schedule, and technical performance probabilistic models to forecast potential risks to program performance DEFINE EXPLICIT, BALANCED, AND FEASIBLE ALTERNATIVES Make tradeoffs that connect cost, schedule, and technical performance in a single “trade space” model Measures of Effectiveness and Measures of Performance are the raw materials for these tradeoffs 2. Establish Requirements Baseline – DEFINE MEASURES OF PERFORMANCE (MOP) PERFORM FACT FINDING Produce an overall statement of the problem in the operational context Develop the overall operational and technical; objectives of the target system through Measures of Performance (MoP) for the requirements Define the boundaries and interfaces of the target system GATHER AND CLASSIFY THE REQUIREMENTS Gather required operational capabilities, functional, nonfunctional, and environment requirements and design constraints Build a Top Down Capabilities and Functional decomposition of the requirements in a flow down tree using a requirements tool EVALUATE AND RATIONALIZE THE REQUIREMENTS Answer the question “why do we need this?” in terms of operational benefits Build a cost / benefit model using probabilistic assessments of all variables and dependencies For technical requirements, perform a risk assessment to the cost and schedule PRIORITIZE THE REQUIREMENTS Determine the criticality for the functions for the system’s mission Determine tradeoff relations for all requirements to be used when option decision are made For technical items, prioritize the cost and dependencies INTEGRATE AND VALIDATE THE REQUIREMENTS Address completeness of requirements by removing all TBD items Validate the requirements agree and are traceable to capabilities, goals, and the mission Resolve any requirement inconsistencies and conflicts Chapter IChapter I54
  55. 55. 3. ESTABLISH PERFORMANCE MEASUREMENT BASELINE – DEFINE TECHNICAL PERFORMANCE MEASURES (TPM) DELIVERABLES BASED PLANNING® DECOMPOSE REQUIREMENTS INTO WORK PACKAGES AND PLANNING PACKAGES Decompose the program scope into a product based Work Breakdown Structure (WBS) Decompose the WBS into Work Packages describing the production of all deliverables and processes traceable to the requirements ASSIGN ACCOUNTABILITY FOR THE DELIVERABLES FROM EACH WORK PACKAGE Assign accountability for Work Packages to a named owner for the management of resource allocation, cost baseline, and technical delivery ARRANGE WORK PACKAGES IN A LOGICAL ORDER Arrange Work Packages in a network with defined deliverables, milestones, internal and external dependencies, appropriate schedule and cost margin DEVELOP THE BUDGETED COST FOR WORK SCHEDULED (BCWS) FOR EACH WORK PACKAGE AND PLANNING PACKAGE Develop a time‒phased Budgeted Cost for Work Scheduled (BCWS) for labor and material costs in each Work Package Develop a time‒phased Budgeted Cost for Work Scheduled (BCWS) for the program as a whole Assure proper resource allocations can be met and budget profiles match expectations of the program sponsor ASSIGN WORK PACKAGE MEASURES OF PERFORMANCE (MOP), KEY PERFORMANCE PARAMETERS (KPP), AND TECHNICAL PERFORMANCE MEASURES (TPM) Assign an objective Measure of Performance (MoP) for each critical Work Package deliverable Trace critical deliverables to the Measure of Effectiveness (MoE) defined in the Capabilities baseline Summarize these Measures of Performance (MoP) and Measures of Effectiveness (MoE) for the program as a whole Assign measures of Physical Percent Complete for each Work Package Assign measures of Physical Percent Complete for the program as a whole SET THE PERFORMANCE MEASUREMENT BASELINE (PMB) Establish a Performance Measurement Baseline (PMB) used to forecast Work Package and Project ongoing and completion cost and schedule metrics 4. Execute the Performance Measurement Baseline (PMB) – Maintain Cost, Schedule, and Technical Performance PERFORM AUTHORIZED WORK IN THE PLANNED SEQUENCE Using the Work Package sequencing, release work to be performed as planned With the RACI based RAM, the Accountable delivery manager guides the development of the products or service for each Work Package ACCUMULATE AND REPORT WORK PACKAGE PHYSICAL PERFORMANCE Using Physical Percent complete or Apportioned Milestones, capture the measures of “progress to plan” for each Work Package Report the Physical Percent Complete in a centralized system for each Work Package and he program as a whole ANALYZE WORK PACKAGE PERFORMANCE Compare the Actual Percent Complete against the Planned Percent Complete for each period of performance Construct cost and schedule performance indices from this information and the Physical Percent Complete measures TAKE CORRECTIVE MANAGEMENT ACTION FOR ANY VARIANCE IN WORK PACKAGE PERFORMANCE With the cost and schedule performance indices, construct a forecast of future performance of cost, schedule, and technical performance compliance Take management actions for any Work Packages not performing as planned MAINTAIN PERFORMANCE MEASUREMENT BASELINE’S INTEGRITY Record past performance based on Work Package completion criteria Record previous future performance estimates in a historical database Forecast future performance against the Performance Measurement Baseline Report the future performance estimate to the program stakeholders Chapter IChapter I55
  56. 56. Program Events Define the availability of a Capability at a point in time. Accomplishments Represent requirements that enable Capabilities. Criteria Represent Work Packages that deliver the Requirements. Work Package Work Package Work Package Work Package Work Package Work Package Work Package Work package § Deliverables Based Planning® describes of the increasing maturing of a product or service through Events or Milestones, Accomplishments, Criteria, and Work Packages. § Each Event or Milestone represents the availability of one or more capabilities. § The presence of these capabilities is measured by the Accomplishments and their Criteria. § Accomplishments are the pre–conditions for the maturity assessment of the product or service at each Event or Milestone. § This hierarchy decomposes the System Capabilities into Requirements, Work Packages, and the activities the produce the deliverables. This hierarchy also describes increasing program maturity resulting from the activities contained in the Work Packages. § Performance of the work activities, Work Packages, Criteria, Accomplishments, and Events or Milestones is measured in units of “physical percent complete” by connecting Earned Value with Technical Performance Measures. The structure of a Deliverables Based Plan Chapter IChapter I56
  57. 57. 10 organizing principles guide the deployment of Deliverables Based Planning® and the application of the 5 Process Areas. These 10 principles form the basis of the “theory” of Deliverables Based Planning®, while the Process Areas are the practice of the principles. 57 II10 Organizing Principles Chapter
  58. 58. The 10 Organizing Principles of Deliverables Based Planning® Assess the capabilities being provided through the deliverables Fulfill the requirements through effort held in the Work Packages Produce deliverables from Work Packages Planned BCWS Physical % Complete WP’s produce deliverables that fulfill requirements Capabilities topology defines requirements flow down WP flow must describe the increasing maturity of the product or service Producing the deliverables in the planned sequence maintains the value stream to the customer ChapterII 58 Deliverables Based Planning ® is a registered trademark of Lewis & Fowler. Copyright ® Lewis & Fowler, 2011
  59. 59. The 10 Organizing Principles of Deliverables Based Planning® Organizing Principles in Order of Increasing Maturity 1 Capabilities drive system requirements. All requirements must be traceable to a capability. Requirements identify technical and process deliverables. All deliverables must be traceable to a requirement. Work Packages describe the production of deliverables. Integrated Master Schedule (IMS) arrange the Deliverables, Accomplishments, Criteria, and Work Packages into a logical – risk adjusted – activity network. Work Package progress is measured as Physical Percent Complete against the planned progress at time of the performance assessment. Work Authorization assures the sequence of Work Packages produce progress at the planned rate for the planned cost, with the planned product maturity at each assessment point in the IMS. Earned Value describes the current performance and provides information about future performance. Conformance with Technical Performance Measures adjusts Earned Value for rework, quality, or delayed features, using Units of Measure meaningful to the decision makers. Performance feedback from each WP and program level Earned Value adjusts the WP sequence and resource allocation to reestablish an on–time, on–budget schedule. Future performance is based on the To Complete Performance Index (TCPI), Independent Estimate At Complete (IEAC), and the adjusted work sequence. ChapterII 59
  60. 60. Capabilities Drive System Requirements The principles for defining a capability address the flexibility needed to ensure system responsiveness and sustainability in a context of constant change, while delivering tangible benefits to the buyer These include: Agility, Tailorability, and measures of System Element coupling and cohesion. Governance principles provide guidance to institutionalize a process, including its continued assessment and evolution over time in support of the tangible system benefits. These include: Enforced Rules & Responsibilities, Workflow Guidance, Continuous Improvement, Transformation enablers. The core concept in Capabilities Based development is the focus on the delivery of value. The concept of “Value Focused Thinking” starts with two methods of decision making: the 1st focuses on competitive analysis between the various alternatives, and the 2nd focuses on attaining organization values as the fundamental objective of any decision making process. [Pagatto07] During the development of the Concept of Operations for each capability, assumptions must be made in the absence of specific technical and operational information. To avoid unwelcome surprises, some form of assumptions based planning is needed. 1) Make operational plans, 2) Describe plausible events, 3) Identify the “signposts” for potential problems, 4) Discover shaping actions that shore up uncertain assumptions, and 5) take hedging actions to better prepare for the possibility that an assumption will fail [Dewer02] Capabilities planning consists of several core processes to describe the system capabilities in the absence of the specific technical or operational requirements. Discover what is not known by reaching a sufficient basic knowledge level setting the problem space. Identify problems by understanding the current process, along with people and technology involved. Establish boundaries and solution elements. These are grouped into five categories: 1. Orientation principles align the process on a sound theoretical basis issued from generally accepted practices in the areas of engineering, modeling, and acquisition. These principles include: Capability Thinking, Architecture Models, Evolutionary Development, and Deliverables Centric planning. 2. Communication principles enforce the standardization of vocabulary and structure of information to be exchanged within or outside the process. These include: Standardized Formats and Common Terminology to describes the system capabilities. 3. Collaboration principles enable active and timely participation of all stakeholders involved in the engineering of a capability. These include: Collaborative Engineering and Information Sharing between the contributors of the system capability elements. ChapterII 60
  61. 61. Capabilities Drive System Requirements ¨ Establish the system capabilities by describing the fundamental ideas about the system through the operational behavior. ¨ Do this before the technical and process requirements are elicited. ¨ Use these Operational Concepts (OC) to describe how the system achieves the beneficial outcomes before any commitments are made to the implementation. ¨ Use a Capabilities Based Assessment (CBA) to define gaps in the current system and the approaches to providing capabilities within a specified functional or operational concept. ¨ Construct three capability assessments: Functional Area Analysis, Functional Needs Analysis, and Functional Solutions Analysis. ¤ Functional Area Analysis (FAA) is a capabilities based task analysis that provides the framework for assessing required capabilities for the success of the system. ¤ Functional Needs Analysis (FNA)assesses the ability of the current system to accomplish the needed tasks identified in the FAA, in the manner prescribed by the concept under the operating conditions and to prescribed standards. ¤ Functional Solutions Analysis (FSA) is an operationally based assessment of the potential strategies, organizations, training, leadership and education, personnel, facilities, and materials (technologies) for solving open of more of the capability needs. ChapterII 61
  62. 62. Requirements Identify Technical And Process Deliverables Inadequate requirements engineering is a common problem in the development of any complex system. There are many issues associated with requirements engineering, including failure to define the system scope, failure to foster understanding among the different communities affected by the development of a given system, and failure to deal with the volatile nature of requirements. These problems lead to poor requirements and the cancellation of development, or else the development of a system that is later judged unsatisfactory or unacceptable, has high maintenance costs, or undergoes frequent changes. [Young04], [Grady06] By improving requirements elicitation, the requirements engineering process can be improved, resulting in enhanced system requirements and potentially a much better system. Requirements engineering is decomposed into the activities of requirements elicitation, specification, and validation. Most of the requirements techniques and tools today focus on specification, i.e., the representation of the requirements. The Deliverables Based Planning approach concentrates on elicitation concerns, those problems with requirements engineering that are not adequately addressed by specification techniques. The elicitation methodology to handle these concerns. Is provided by [Cristel92]. Whatever the actual process used, the following activities are fundamental to all Requirement Engineering processes:[Sommerville05] § Elicitation – Identify sources of information about the system and discover the requirements from these. § Analysis – Understand the requirements, their overlaps, and their conflicts. § Validation – Go back to the system stakeholders and check if the requirements are what they really need. § Negotiation – Inevitably, stakeholders’ views will differ, and proposed requirements might conflict. Try to reconcile conflicting views and generate a consistent set of requirements. § Documentation – Write down the requirements in a way that stakeholders and software developers can understand. § Management – Control the requirements changes that will inevitably arise. ChapterII 62
  63. 63. Requirements Identify Technical And Process Deliverables ¨ Derive the system requirements for each system capability. ¨ Assure a requirement exists for each system capability needed to fulfill the mission of the system. ¨ Develop the traceability from capabilities to requirements to produce a “minimalist” system, with each requirement being present only because of a needed system or mission capability. ¨ Test requirements by answering the question “why do we need this feature, function, service, or capability?” ¨ Create Technical Performance Measures: [IEEE 1220] ¤ High priority requirements that have an impact on: mission accomplishment, customer satisfaction, cost, system usefulness. ¤ High risk requirements or those where the desired performance is not currently being met: the system uses new technology, new constraints have been added, the performance goal has been increased, but the performance is expected to improve with time. ¤ Requirements where performance can be controlled. ¤ Requirements where the program manager is able to rebalance cost, schedule and performance. ChapterII 63
  64. 64. Work Packages Describe Production Of Deliverables Staying focused on decomposing the system capabilities into clearly defined streams of functionality is a critical success factor. This effort decouples the technical functionality from the system capabilities – increasing cohesion and reducing coupling between each stream. This decomposition is almost never optimal the first time around. The false sense of urgency to decompose the system requirements into a Work Breakdown Structure will cause extra work later on. Investing in a carefully developed WBS will pay back later in the program by isolating the work processes into supporting value streams. There is no set of instructions on how to do this. But starting the WBS in a graphical form, putting that diagram on the wall and asking coupling and cohesion questions about the terminal nodes in the WBS is one way to “test” to goodness of the WBS. The construction of the Work Breakdown Structure (WBS) starts with the decomposition of the requirements into collections of deliverables. Focusing on the deliverables is critical. The Work Packages that result from this decomposition are the vehicles for producing the deliverables. When these deliverables exist they provide the capabilities requested by the system to perform it function. All resources – internal and external, their dependencies, and any other items needed to produce the deliverables – are defined in Work Packages. The Work Package Manager is accountable for managing all these resources. If resources are not under the control of the Work Package Manager, the risk to the success of the deliverables is greatly increased, because … Accountability is no longer traceable to a single person – violating the principles of the Responsibility Assignment Matrix. Performance reporting for Physical Percent Complete is no longer represented by tangible items within Wok Package. Each Work Package produces one deliverable. This deliverable may have a Technical Performance Measure attached – a Measure of Performance (MoP) or Measure of Effectiveness (MoE). These Technical Performance Measures connect the dots between Cost, Schedule, and Technical maturity of the deliverable. In the absence of Technical Performance Measures, the Performance Measurement Baseline lacks the ability to connect physical percent complete with the increasing maturity of the product or service. ChapterII 64
  65. 65. Work Packages Describe Production Of Deliverables ¨ Use the Work Packages (WP) executable tasks to produce deliverables at the conclusion of each WP duration. ¨ Avoid connections between WPs that are not Finish‒to‒Start at the WP boundaries, this “hides” dependencies. ¨ Work contained in the WP produces a single or small number of deliverables. ¨ Use performance measures at the Work Package level to assess the progress of the increasing maturity of the deliverables produced by each WP. ¨ Do not measure effort, the passage of time, or consumption of resources as assessments of progress. ¨ Use apportioned milestones, 0%/100%, 50%/50%, and other forms of incremental physical progress as a credible measures of percent complete at the WP level. ¨ When performance measures of actual delivered value are used, the physical progress of the program becomes a credible measure success. ¨ Measuring Earned Value for each task within the WP may be of little value for the program without a measure of Technical Performance (Measures of Effectiveness and Measures of Performance). ChapterII 65
  66. 66. Master Schedule Sequences Deliverables, and Work Packages in a Network Arranging the Work Packages in a logical network is an iterative process. It should be obvious which major deliverables come first, second and later. Building an initial network, plotting that network in the Big Visible Chart, hanging that chart on the wall and standing in front of it with all the Work Package Managers is part of developing a credible PLAN for the program. The PLAN is the strategy for delivering the business capabilities the customer asked for. With the Big Visible Chart, this strategy is made visible – or at least more visible than a list of Work Packages. The strategy for delivering the program should be mapped out in some wall walk manner to make the connections obvious. This hands on approach is much better than burying the relationships in a program plan or spread sheet. Making the first cut is a hands on process. The arrangement of Work Packages should start with some simple rules: 1. All relationships are Finish to Start. This initial arrangement provides visibility into the dependencies that will drive schedule compression. Non FS relationships create opportunities to use partially complete work in future efforts, resulting in “rework,” the predecessor efforts are complete. 2. There should be no “lead” or “lag” arrangements. These create hidden dependencies and hidden schedule compression. 3. The only constraints on the network should be a “Must Start On” (MSO) for the start date and “As Soon As Possible” (ASAP) for all other activities. Any other constraints create hidden dependencies. This appears harsh at first, but is the basis of an “ideal” schedule. Other constraints may be added later, but only for necessary reasons, that are described in the IMS Narrative. 4. The flow of Work Packages should create a description of the increasing maturity of the products or services of the project – not just the consumption of resources and production of deliverables. This Maturity description should be meaningful to the customer in terms of business capabilities. At this point in time we will be able to perform the following business capabilities. 5. Speaking in these terms, the customer gains insight into the actual progress of the program. Speaking in consumption of resources, production of code, passage of milestones is not that meaningful to the customer 6. Point estimates of cost and schedule are meaningless without the range of possibilities, the level of certainty in achieving each value, and how these estimates impact the credibility that the program will complete on time, on schedule, and with the planned technical performance. ChapterII 66
  67. 67. Master Schedule Sequences Deliverables, and Work Packages in a Network ¨ Arrange Work Packages in an un–constrained Activity Network. ¨ This network is a description of the flow of increasing maturity of the product or service resulting from the completion of each Work Package. ¨ This network answers the 6 critical questions needed for success: ¤ Who is responsible for performing this the work? ¤ What are the constituent components of the work and what is the evidence that they are complete? ¤ When is this the work required to be completed? ¤ Where will this work be performed? ¤ Why does this work need to be done? ¤ How does this support the acceptance of the product or service by the customer? ¨ Postpone the detailed scheduling until there is a credible WP process flow increases the visibility into dependencies as well as programmatic and technical risk and its mitigation. ¨ Define the Exit criteria for each WP the describes what “done” looks like and what technical maturity is needed to proceed to the next WP. ¨ The schedule of work within the WP can then be developed by the “owners” of the work effort – the Work Package Manager (Control Account Manager). ¨ Cost, Schedule, and Technical Performance values must be described in statistical terms, within a range of possible values and the probability of their occurrence. ChapterII 67
  68. 68. Work Package Progress is Measured as Physical % Complete Against Plan Measuring progress to plan can ONLY be done with Physical Percent Complete (PPC). Any other measure of progress can not be connected to the delivery of business value to the customer. This is the basis of Earned Value and it is also the basis of Agile Software Development methodologies. Deliver working code at all times. Using the 0% /100% assignment or the Apportioned Milestone assignment, the Physical Percent Complete is multiplied by the Budgeted Cost of Work Scheduled (Planned Value, PV) for the entire Work Package to produce the Budgeted Cost of Work Performed (Earned Value, EV). PMI has used BCWP(EV) = PPC X Budget at Completion, where BAC = Sum(all Work Packages BCWS) This is the ONLY way BCWP(EV) can be produced. Any other way creates an invalid baseline measure of progress to plan. With the Work Packages defined, the BCWS(PV) spreads for each Work Packages established and the Work Packages assembled into a credible network, a Performance Measurement Baseline can be established. Step by Step check list for setting the baseline: 1. All BCWS spreads have been balanced against available resources for that Work Package and the program as a whole. This is a long, difficult and very unpleasant process. But letting a scheduling tool do this work has several undesirable outcomes: § The longest date usually results, since the tool spreads the resources according to their availability. § The planners of the program will not actually understand the resource spreads assigned by the machine § The day to day decisions of assigning work will now be removed from those who can make the decisions § The visibility into the logical process of assigning work is lost and the planners are simple observers 2. All Work Packages have apportioned milestones, 0/100, 50/50, or 25/75 assignments of Earned Value (BCWP)(EV) 3. All data fields in the schedule have been assigned and checked ChapterII 68
  69. 69. Work Package Progress is Measured as Physical % Complete Against Plan ¨ Measure progress as Physical Percent Complete to provide a credible assessment of the increasing maturity of the delivered product or service. ¨ Use each work activity in the Work Package to provide some form of progress toward producing the deliverable. ¨ Use this progress as an incremental measure of the overall progress of the Work Package. ¨ Predefine how each work effort contributes to the overall progress of the Work Package. ¨ Have the Work Package owner describe the incremental Physical Percent Complete is terms of tangible evidence of progress to plan. ¨ Assure what “done” looks like is defined in terms of the Physical Percent Complete of the Work Package, Measures of Effectiveness, and Measures of Performance. ¨ Capture this definition in the Work Package documentation. ¨ Ask the question: ¤ How Long Are You Willing to Wait Before You Find Out You Are Late? ¨ Measure physical progress to plan soon enough before that period of performance arrives, so management corrections can be made to stay on cost, schedule and technical performance. ChapterII 69
  70. 70. Work Authorization Assures Work Packages Produce Planned Progress The work authorization system is used by the program manager and his or her designees in order to approve all work throughout the course of the current program management venture. The work authorization system will typically be in the form of a list of formally adopted and well‒ documented procedures. Work authorization procedures specifically detail who may authorize work to be completed and how those authorizations may be obtained. These procedures will include which documents must be completed prior to work being initialized, and whether there are any other prerequisites to work being performed at any particular level during the program. To better assist the efficiency of program management in larger programs, work authorization systems sometimes detail the timeline of the program. For instance, the work authorization system might include at which points in time certain portions of the program should be completed, in which order those tasks are to be completed, and by whom. It is important for program management to be aware of how they convey the work authorization to their staff. To ensure that spoken words are not misinterpreted, written directions for the Work Packages provide explicit guidance. The Work Package can be anything which might need to be accomplished to produce a deliverable. By providing a written work authorization, those in program management can be assured that their wish to have the job done by the right people, at the correct time, and in the right order. The Project Manager needs to be cautious to write out the exact steps on the work authorization. This prevents misunderstandings and mistakes along the line. To have the work done correctly the first time, the manager must have good communication skills with his workers, both in the writing of the authorization and in answering any questions which might arise. Proper direction given to employees in the work permitting directive will ensure that the task is completed in the expected manner. ChapterII 70
  71. 71. Work Authorization Assures Work Packages Produce Planned Progress ¨ Executing the Work Packages (WP) in the agreed sequence assures the program proceeds as planned. ¨ This approach starts with a Work Authorization and control processes and continually monitors, Late Starts, Late Finishes, Schedule Margin erosion, and Technical Performance Measure compliance. ¨ Work Authorization does not inhibit the performance of work, but assures that work is performed in the planned sequence with the planned programmatic risk reduction, to continuously increase the maturity of the product or service. ¨ “Out of sequence work” creates programmatic and technical risks: ¤ It disrupts the Earned Value calculations – work without a budget in the planned period is an overrun. Planned budget without actual work being performed is recorded as an under run. In both cases EV is reported improperly. ¤ The strategy developed for sequencing work to increase the maturity of the product or service is disrupted. ChapterII 71
  72. 72. Earned Value Describes Current Performance From the ANSI‒748 Guideline: § The Earned Value Management System (EVMS) incorporates business best practices to provide strong benefits for program or enterprise planning and control. § The processes include integration of the program scope, schedule, and cost objectives, establishment of a baseline plan for accomplishment of program objectives and the use of earned value techniques for performance measurement during the execution of the program. § The EVMS provides a sound basis for problem identification, corrective actions, and management replanning as may be required. § Any Earned Value Management System must: § Plan all work scope for the program through completion. § Integrate program work scope, schedule, and cost objectives into a baseline plan against which accomplishments can be measured. § Objectively assess accomplishments at the work performance level. § Analyze significant variances from the plan and forecast impacts. § Provide data to higher levels for management decision making and implementation of management actions. For the benefits of Earned Value to be fully realized, thorough planning, combined with the establishment and maintenance of a baseline for performance measurement is needed. The combination of advanced planning, baseline maintenance, and earned value yields earlier and better visibility into program performance than is provided by non‒integrated methods of planning and control. The key to success is to establish the performance baseline at the Work Package level. The Work Package is the point at which work is planned, progress is measured, and earned value computed. ChapterII 72
  73. 73. Earned Value Describes Current Performance ¨ Recognize Earned Value is cost based. Cost Variance and Schedule Variance have the same units of measure – Dollars. ¨ Use the To Complete Performance Index (TCPI) and the Independent Estimate At Completion (IEAC) as measures of progress derived from Earned Value. But they are also measured in dollars. ¨ Using the TCPI and IEAC, the program manager has visibility into the work performance needed to stay on schedule and the forecast cost of this effort. ¨ Recognize the credibility of these indices depends on the credibility of the underlying earned value numbers. This is the primary motivation for maintaining good data on the program. Otherwise the Earned Value numbers are not only wrong, they provide no real value for guiding management in decisions that impact the future performance of the program. ¨ Consider using Earned Schedule [ES] to complement Earned Value [PMI EV]. Earned Schedule is a method of deriving schedule performance from Earned Value data [Lipke], [Henderson04], [Vanhoucke] ChapterII 73
  74. 74. Conformance With Technical Performance Measures Adjusts EV Performance Values Technical Performance Measures (TPMs) are traditionally defined and evaluated to assess how well a system is achieving its performance requirements. Typically, dozens of TPMs are defined for a system. Although they generate useful information and data about a system’s performance, little is available in the program management community on how to integrate these measures into a meaningful measure of the system’s overall performance risk. TPMs may be combined to measure and monitor the overall performance risk of a system. The approach consists of integrating individual technical performance measures in a way that produces an overall risk index. The Program Manager must be cognizant of three basic program elements (baselines): § Cost § Schedule § Technical Performance The first two are tracked through cost and schedule control systems (earned value). The last is tracked through the technical performance measurement (TPM) system. TPM is the program manager’s early warning system, when correlated to cost and schedule reports, to provide the complete status of the program. The TPM method includes selecting Technical Performance Parameters; assigning weights; linking to CWBS; planning progress over time; getting data; evaluating variances; and taking corrective action as needed. Variances indicate level of risk and detect new risks before their effects on cost/schedule are irrevocable. The TPM approach involves: § Assessing technical characteristics of the system and identify problems through tests/analyses. § Surfacing inadequacies in time and dollars. § Complements cost/schedule performance measurement § Providing a basis for cost/schedule revisions. § Facilitating the verification of results achieved against technical requirements and what remaining technical work can be accomplished within established budgets. ChapterII 74
  75. 75. Conformance With Technical Performance Measures Adjusts EV Performance Values ¨ Adjust the “Earned Value” forecast of future performance by the compliance with Technical Performance Measures (TPM). ¨ Correlate Technical Performance Measures with cost and schedule to provide the complete status of the program. ¨ Use Technical Performance Measures to add “technical achievement” to Earned Value’s cost and schedule metrics. ¨ Assess the program’s progress in terms of technical compliance, potential rework, postponed functionality (to later Work Packages or rolling waves) and other dilutions of the physical progress of the program. ¨ Use Technical Performance Parameters (TPPs) to indicate key areas for risk reduction and program success. ¨ Technical Performance Measures (TPMs) are a time–phased progress plan for achievement of critical TPPs. ChapterII 75
  76. 76. Performance Feedback Used To Adjust WP Sequence and Resource Allocation Earned Value Management (EVM) is a program management tool integrates Cost and Schedule parameters as an early warning system for future performance of the program. But the EVMS standard states that EV is a measurement of quantity (BCWP), not quality, of the work accomplished. As far back as 1997, the discussion was integrating Cost, Schedule, and Technical Performance. Robust systems engineering and software engineering processes should provide technical performance measures (TPM) and exit criteria for assessing technical maturity that are quantitatively linked to Earned Value. Adjusting the To Complete Performance Index (TCPI) and the Independent Estimate At Complete (IEAC) for less than planned technical performance measurements – quality, missing scope, delayed scope, or combinations of these and other less than planned outcomes. These TPMs are defined and evaluated to assess how well a system is achieving its performance requirements. Technical performance measurement uses actual or predicted values from engineering measurements, tests, experiments or prototypes. The introduction the Earned Value Management Intent Guide speaks to this but better guidance is needed [Solomon]. To provide the needed feedback for adjusting the TCPI and IEAC values , the following activities need to be performed: § Include systems engineering activities in the schedule and the Performance Measurement Baseline (PMB). § Establish thresholds or parameters for TPM in the program plan. § Specify objective measures of progress as base measures for EVM for: Development maturity to date, product’s ability to satisfy requirements, Product metrics, including TPM achievement‒to‒date. § Review program’s plans, activities, work products and performance measurement baseline for consistency with the requirements and the changes made to the requirements baseline. § Incorporate risk mitigation plans in the program plan, including changes to the PMB. § Include quantified risk assessments in the EAC depending on the probability of risk occurrence and the impact on cost objectives. With this information, TCPI and IEAC can be adjusted to reflect the Physical Percent Complete of the Work Packages, not just the Cost and Schedule performance measures. ChapterII 76
  77. 77. Performance Feedback Used To Adjust WP Sequence and Resource Allocation ¨ Adjust the Work Package sequence using feedback from the performance measures to maintain compliance with the Measures of Effectiveness (MoE), Measures of Performance (MoP), and Technical Performance Measures (TPM). ¨ TPM methodology includes: ¤ Selecting TPPs; assigning weights; linking to CWBS; planning progress over time; getting data; evaluating variances; and taking corrective action as needed. ¤ Variances can indicate level of risk and detect new risks before their effects on cost/schedule are irrevocable. ¨ Assess of the technical performance characteristics of the system to identify problems by: ¤ Having assessments coincide with cost reporting and completion of significant design tasks. ¤ Surfacing inadequacies in time and dollars. ¤ Complementing the standard cost/schedule performance measurement. ¤ Providing the basis for cost/schedule revisions. ¤ Facilitating the verification of results achieved against technical requirements and that remaining technical work can be accomplished within established budgets. ChapterII 77
  78. 78. Forecast Of Future Performance Based On TCPI, IEAC, and Work Sequence Employing Earned Value Management can present a program with data not available with any other management tool. And while each metric can be useful, there are two metrics are particularly useful in the management of any project, or program, or a portfolio of projects. The Cost Performance Index (CPI) is a reflection of program cost efficiency. The CPI relates the physical work accomplished, expressed in its budgeted value, against the actual costs incurred to accomplish the performed work. Budgets can be set with various monetary values, hours, deliverables, or anything else that can be measured. The question: Is the program staying on target, under running, or perhaps overrunning costs? Perfect cost performance would be defined as achieving a CPI of 1.0: For every dollar spent, we would get an EV equal to one dollar. Sometimes we do better, sometimes worse. This is a particularly critical metric to track because performance at less than 1.0 is a reflection of excessive costs spent against budget. Initial overruns are typically non‒recoverable. Think about it: In order to recover an overrun, future work must be underrun. Rarely does this happen. The same conditions which may have caused the overrun in the first place are likely to occur again and again. The CPI is an indicator of past cost performance, the TCPI has its focus on future performance. The question: What will it take to meet the goals set by management? The TCPI works in conjunction with the CPI. TCPI = Work Remaining / Funds Remaining The CPI can be thought of as sunk‒costs; whatever the results, they cannot be altered. The TCPI is the efficiency needed to regain the lost performance from the past. ChapterII 78
  79. 79. Forecast Of Future Performance Based On TCPI, IEAC, and Work Sequence ¨ Develop a new forecast of cost and schedule with the new sequence of Work Packages. ¨ Base this forecast on the To Complete Performance Index (TCPI) and the Independent Estimate At Complete (IEAC) [Henderson08]. ¨ There are five IEAC indices. ¤ IEAC1 = BAC / CPI ¤ IEAC2 = ACWP + (BAC – BCWP) / SPI ¤ IEAC3 = ACWP + (BAC – BCWP) / (SPI x CPI) ¤ IEAC4 = ACWP + (BAC – BCWP) / ((wt1 x SPI) + (wt2 x CPI)) ¤ IEAC5 = ACWP + (BAC – BCWP) / CPIx ChapterII 79
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  81. 81. Deploying the five core processes of Deliverables Based Planning® is an incremental and iterative activity. Each incremental step increases the maturity of the project or program deliverables. 81 IIIDeploying Deliverables Based Planning® Chapter
  82. 82. 82 Putting The Five Core Processes of Deliverables Based Planning® to Work Define the set of capabilities needed to achieve the program objectives or the particular end state for a specific scenario. Using the ConOps, define the details of who, where, and how it is to be accomplished, employed and executed. 1 Define the technical and operational requirements that must be in place for the system capabilities to be fulfilled. First, define these requirements in terms that are isolated from any implementation technical products. Only then bind the requirements with technology. 2 Build a time–phased network of schedule activities describing the work to be performed, the budgeted cost for this work, the organizational elements that produce the deliverables, and the performance measures showing this work is proceeding according to plan. 3 Execute work packages, while assuring all performance assessment are 0%/100% complete before proceeding. No rework, no forward transfer of activities to the future. Assure every requirement is traceable to work and all work is traceable to requirements. 4 Perform the 6 process areas of Continuous Risk Management for each Deliverables Based Planning® process area to Identify, Analyze, Plan, Track, Control, and Communicate programmatic and technical risk 5 Chapter III
  83. 83. Define the set of capabilities needed to achieve the program objectives or the particular end state for a specific scenario. Using the ConOps, define the details of who, where, and how it is to be accomplished, employed and executed. Process Activities Outcomes or Deliverables Benefits Using the supplied Statement of Work (SOW), Statement of Objectives (SOO) extract a description of the operational behavior of the system in a Concept of Operations (ConOps) and an associated process flow diagram. A Process Flow Diagram of the system with verbs in the boxes and nouns on the lines. This can be done in Visio using the IDEFÆ notation, or some other systems engineering process and element diagramming method [IDEFÆ]. A single diagram showing the system components, the data or actions it produces, and how these components interact. This diagram shows the increasing maturity of the system as is proceeds from left to right in the Integrated Master Plan (IMP), through each Program Event. With the Process Flow Diagram, identify the Accomplishments for each Milestone or Event. Identify the dependencies between each Accomplishment within and between the Integrated Product Team (IPT) stream. For each Event or Milestone, build a single page chart for each Accomplishment for each Integrated Product Team (IPT) members work stream. These diagrams show how each Event or Milestone will be met from the completion of the Accomplishment s. With the dependencies identified, a top level precedence diagram is now available for the development of the Integrated Master Schedule (IMS). With each Accomplishment defined and arranged in a sequence of increasing maturity within the Event or Milestone, capture the Criteria for the assessment of the Accomplishment. These Criteria are the “Exit Criteria” for the Work Packages containing the Work Tasks. The exit criteria for the work effort will be defined in terms meaningful to the assessment of Physical Percent Complete and the completion of the Accomplishment. Connections from Milestone or Event, to Accomplishments and to the Criteria describe the increasing maturity of the program. This is more than just the traditional list of items in the Integrated Master Plan. But a description of the program’s process flow and its increasing value. 1 Chapter III83
  84. 84. Define the technical and operational requirements that must be in place for the system capabilities to be fulfilled. First, define these requirements in terms that are isolated from any implementation technical products. Only then bound the requirements with technology. Process Activities Outcomes or Deliverables Benefits Identify the end user and system functional requirements through a requirements flow down process in some type of database system. This doesn’t have to be a large scale tool, but it must provide some sort of change control and tracking of the requirements. In order to make requirements trade offs, the requirements must be organized in a logical manner. Starting organized, keeping organized, and tracing changes to the requirements is part of the requirements elicitation and management processes. Keeping requirements under control is a critical success factor for controlling the scope of the program. Not changes to the requirements baseline can be made without on impact assessment. Build a Requirements Traceability Matrix between the SOW, SOO, ConOps, CDRLs, DID’s and any other document containing requirements. Place these requirements in a database so “pivots” and “coverage” assurance can made between all the sources. There may be conflicting requirements on the program. This will never be known early if all the requirements are not in one place, under the control of the Change Board The requirements elicitation process has five (5) steps: § Fact finding § Gathering and Classifying § Evaluation and Rationalization § Prioritization § Verification and Validation These must be performed in an iterative, incremental, and logical sequence, capturing the resulting “emergence” of the requirements baseline through each cycle. A requirements system model that captures facts, classifications, evaluation, rationalizations, prioritizations, and verifications in a Requirements Management Database of some form. By organizing the requirements in the form of a database is a critical success factor for the program. With this database, traceability of the requirements from the system capabilities to the technical and operational deliverables. Only by building these traceability relationships, can trade offs be made in the presence of distributions in the program due to funding, requirements, and technical changes. 2 Chapter IIIChapter III84
  85. 85. Build a time–phased network of schedule activities describing the work to be performed, the budgeted cost for this work, the organizational elements that produce the deliverables, and the performance measures showing this work is proceeding according to plan. Process Activities Outcomes or Deliverables Benefits Using the Events or Milestones, Significant Accomplishments, Accomplishment Criteria, the Work Packages and Planning Packages are constructed for each Accomplishment Criteria. These Work Packages are the starting point for the Integrated Master Schedule The Work Packages contain the resources and work activities needed to produce a deliverable represented by the Accomplishment Criteria – the outcome of the Work Package. An Integrated Master Schedule (IMS) for the work effort needed for each Accomplishment Criteria is the starting point for optimizing the program execution description. The IMS describes the work activities needed to increase the maturity of the delivered product or service. The Exit Criteria for these work activities are measured by the Accomplishment Criteria – the measureable outcome of each Work Package. The Accomplishment Criteria are the entry conditions for the Significant Accomplishments. The Significant Accomplishments describe the current maturity of the deliverables in units of measure defined during the development of the Integrated Master Plan (IMP). The increasing maturity of the program can be measured through assessments of Physical Percent Compete. These units of measure are derived from the Technical Performance Measures of the delivered article at the specific time point in the schedule. By connecting cost, schedule, and technical performance in a time–phased assessment process, the Program Manager will have insight into the progress of the program, not just as assessment of cost and schedule performance. With the sequenced Work Packages, the labor and other direct costs are applied to the Integrated Master Schedule (IMS). This Labor and Cost Spread reveal speaks and valleys in the labor assignments. These must be smoothed to match the actual labor availability before further analysis of the IMS can take place. An “all in” IMS contains all work, all resources, all dependencies , all risk mitigation and retirement plans, and all assessment processes of the increasing maturity of the program. With the IMS in place, budget spreads are “balanced “ across the collection of Work Packages to meet the objective measures of the organization and the technology BCWS balanced spreads across the current rolling wave and across planning packages. Visibility into the budget demands and labor utilization for ach rolling wave and planning packages. 3 Chapter IIIChapter III85
  86. 86. Execute work packages, while assuring all performance assessment are 0%/100% complete before proceeding. No rework, no forward transfer of activities to the future. Assure every requirement is traceable to work and all work is traceable to requirements. Process Activities Outcomes or Deliverables Benefits The duration between measurements of progress must be tuned to the business rhythms of the program. A simple question is how long are you willing to wait before you find out you are too late to take corrective action? Periodic Business Rhythm Meetings where a simple Status Report is reviewed and forecasts for the performance in the next period are committed to. Measuring progress in physical percent complete units provide visibility in ways not possible with simple measures of cost and schedule. Coupling cost, schedule, and technical performance is the basis of Performance Based Earned Value Define the Business Rhythm to provide timely insight into the progress of the program. This should be a minimum of a monthly performance report. A published Business Rhythm Process Flow with deliverables, data sources, work processes, accountabilities, and an archive for this information. Bi–weekly and monthly measures of performance are used to guide management decisions. Capturing the physical percent complete starts with defining the agree on units of measure of performance for each Work Package (WP) allocated to the Control Account. These measures must match the technical assessment of the products or services provided from the WP. Apportioned milestones, 0/100% complete descriptions and other measures of Physical Percent Complete are defined in the WBS Dictionary. Measurements of progress are done through evidentiary materials – artifacts from the program that can be “seen” by the program stakeholders, rather than just “reported” on. By connecting cost, schedule and technical performance in the assessment of progress can the program determine how is it progressing, how efficient the resources are working and what the risk adjust Estimate to Complete is. Project status report that measures the Physical Percent Complete for Apportioned Milestones, 0/394 deliverables or other evidentiary materials of progress. Defining these measures “before” the execution of the WPs provides a baseline for measurement of Physical Percent Complete. 4 Chapter IIIChapter III86

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