Satellite management and control demands complex processes and resources and involves teams of highly qualified specialists running services 24 hours a day, 365 days a year, even throughout decades in case of fleets of large geostationary telecommunication spacecrafts. Program cost predetermination at start-up and resource management at execution, become strategic to gain and maintain excellent quality performances and company reputation along whole program operating life and more. Adoption of PM structured approach during the recent years, together with international engineering and quality standards, enables Telespazio to run effective cost accounting of long term programs, obtaining significant improvement in main financial and economic figures. A post-analysis on these activities, grouped under a dedicated Program Office, has been performed through a cross-reference between direct costs, quality recordings and lessons learned, when available. The outcome of this analysis has been successfully applied in rapid cost estimating against long term order budgeting process. This paper has been presented at IPMA World Congress 2012 and awarded of Special Mention at Telespazio Innovation Award 2011.

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Cost
Pre-­‐determina/on
and
Management
of
Long
Term
Satellite
Opera/ons
and
Maintenance
Programs
Sandro Severoni
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Sandro Severoni - Profile
Sandro Severoni joined Telespazio in 1986 as Junior
Programmer in the Earth Observation Division. In his career, he
was involved in Project Design and Management of innovative
initiatives in the fields of Satellite Remote Sensing and GIS,
Global Telecommunications and Marine Applications. In 2007, he
has been asked to manage TT&C Programs for major satellite
operators and manufacturers. Sandro is involved in the
Finmeccanica PMP program since 2009, where he has been
selected as PM Best Performer. He has been certified Senior
Project Manager IPMA-B in 2010 and awarded of Special
Mention at Telespazio Innovation Award 2011 with this paper.

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Satellite Systems &
Applications
21,1%
Geo Information
17,5% Satellite
Operations
36,7%
Network & Connectivity
24,7%
2011 / ORDERS = 617,9 * M€
2011 / REVENUES= 475,5 M€
* 60% foreign
Satellite
Operations
21,2%
Network & Connectivity
39,2%
Geo Information
19,8%
Satellite Systems &
Applications
19,8%
Our Company – Key Figures

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Our Company – Space Alliance
13
B€
in
revenues
(2011)
67.000
employees
17
B€
in
revenues
(2011)
70.474
employees
67%
33%
33%
67%

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Our Company – Telespazio’s World

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Our Company – Main Space Centres
FUCINO
SPACE
CENTRE
MATERA
SPACE
CENTRE
LARIO
SPACE
CENTRE
SCANZANO
SPACE
CENTRE
OTHER
CENTRES
! TLC &
! 80.00
! 5.00
! 35 a
! Oper
! Telep
Multim
Galileo
! 370.
! 23.0
! More
! 14 co
! 85°E
! Oper

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Our Company – Other Space Centres
BRASIL
RIO
DE
JANEIRO
PORTO
ALEGRE
ITABORAÍ
ROMANIA
CHEIA
ARGENTINA
BUENOS
AIRES
OTHER
COUNTRIES
on
demand

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Our Business

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Satellite Operations
! Satellites and Constellations in orbit control
for civil, military and dual use
! LEOP (Launch and Early Orbit Phase) services
! TT&C (Tracking, Telemetry and Command) and IOT (In Orbit Test) services
! Television and Digital Telecommunications platforms operations
! Control of complex ground infrastructures

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PMP 2008-2011 - Some figures
●
●
●
●
●● ●●●●
2.296
Participants
coming from
14 Countries
276 Editions
(20 Modules)
26 operating
companies
involved
> 130.000 h. of
Training
> 230 PMs
certified by PMI-
PMP® and IPMA
Lev. B and C
22 different Training bases
in 5 Countries (Italy, UK,
France, USA, Australia)
●
●
> 2.000
Competences
Assessment
30 Subject Matter Experts certified
at the INSEAD within the
Finmeccanica Faculty

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PM Competencies - Background

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Program - Review
Stakeholders
! Organizations and virtual teams
! Functions vs. Projects
! Geographic distribution and cultural mix
! Effective communication
Contracts
! Direct costs analysis
! Value generation
Processes
! Time to market
! Lessons learned
! Opportunities capturing
! Cost-package library
! Reduced elapsed time and effort for
proposal generation
! Long term planning and control
! Budgeting
! Configuration Management
! Resource inventory
! Improved management of cost cycle
! Procurement, Technical execution,
Financial
! Project oriented vs. Service oriented

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Program - Organization
Program
Management
Support Engineering
Operations
and
Maintenance
Procurement
Contract Regulatory
Security
Legal
Quality
Product/CM
Assurance
System
Design
Administration
Development
Integration
and Testing
Site
Management Operations Maintenance Logistics
Planning
Controlling
Infrastructures
Antenna systems
RF Systems
Monitor and Control
Connectivity/Networks
Operational
Procedures and Reports
Risk
Management
Maintenance
Procedures and Reports
Sales

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Initiating
Planning
Implementing
Controlling
Reviewing
Extraordinary
Maintenance Plan
Innovation
Technology
Resources
Details (click on/click off)
• Milestones
• Review Meetings
• Reporting
• Customer acceptance
Closing
• Key Performance Indicators
• Internal costs
• Procurement
• Risk management
• Variance analysis (EVMS)
• Corrective actions
• Virtual Teamworking
• Scheduling | GANTT | CPM
• WBS, OBS,CBS , Resp. Matrix
• Costs to completion
• Programme Management Plan
• Resource selection
• Team definition
• Valcom, Contract
• Risks, contingencies
• Tasks Evaluation
• Planning
• Execution and acceptance
• Release of Resources
• Risk and
Opportunities
management
• Change
Management
• Termination
• Lesson Learned
• Baseline Infrastructure Management
• Regulatory Compliance
• Obsolescence
• New requirements
• New technologies
• New procedures
• Team Revision
• Training
• Multicultural
Integration
• Innovative
organization
Program - Process groups

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SAP
db
-­‐
Quality
db
Personnel cost distribution
9%
6%
85%
MNG
ENG
OPE
External costs distribution
54,45%
41,27%
1,32%
2,08%
0,86%
Material and subcontracts
Maintenance
Logistics
Connectivity
Travel and others
Direct costs distribution
17,20%
12,76%
0,46%
57,09%
11,36%
0,65%
0,27%
0,21%
Material and subcontracts
Maintenance
Logistics
Connectivity
Travel and others
Personnel
Mortgages
Cost accounted before 1997
Service
WBS
Investment
WBS
Program – Cost analysis

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170.250
170.222/065
170.050
170.276
170.070
170.061
170.220
170.030
170.060/264
170.010
USD/EUR
TOTAL
Program – Revenues, Opportunities and Risks
Main
contracts
in
USD
Adop/on
of
PMP
Company
reorganiza/on
PM
handover
Revenues
2007-­‐2011:
>
25%
Merge
Virtual
Lack o
Sales +
Cost vs

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Conclusions - Questions & Answers

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Thank you for your attention
Sandro
Severoni
Program
Manager,
IPMA®
level
B
cer/fied
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