The document discusses the importance of establishing an integrated cost and schedule baseline in the earned value management process. It describes a systematic planning process involving multiple phases that results in key planning documents and an integrated baseline. The planning process involves defining the project scope, organizing the work breakdown structure, scheduling tasks, estimating costs, and negotiating and approving the performance measurement baseline.

1. Implementing Project Controls Preparing for the establishment of the Integrated (Cost and Schedule) Baseline in the Earned Value Management Process Matthew T. Gonzales, Jet Propulsion Laboratory Manager, Program and Project Business Leadership 818-354-3629 [email_address] [email_address]

2. [email_address] ‘ Failing to prepare, is preparing to fail’ John Wooden

3. Introduction The establishment of the Integrated (Cost and Schedule) Performance Measurement Baseline is the result of a systematic approach that steps the project through each phase of the planning process. Each phase results in a set of tangible products Each subsequent phase builds on the previous phase such that at the end of the planning cycle, all required documents are completed and integrated The approach is documented in Project Planning Guidelines, a project specific document that describes programmatic, cost and schedule assumptions, constraints and planning guidelines. Guidelines are developed as early as possible in Phase B and issued to the project team. [email_address]

4. What is Project Management : The discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. How can we get on track Total impacts to reserves Project Controls (Cost and Schedule): Consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken. Project Controls asks: Where we are Where we should be [email_address]

5. Cost (Budget) versus Funds Budgeting is NOT Funding Budgeting is the time-phased planning of the total resources required to satisfy the project’s contractual requirements [email_address]

6. [email_address] ‘ If you can't describe what you are doing as a process, you don't know what you're doing.’ W. Edward Deming

7. The End to End Planning Process The business lead develops the overall process and obtains concurrence from project manager. The documented process will be your communication vehicle to the entire project team. Keep it simple . The process is the road map from Authorization to Proceed to establishment of a performance measurement baseline. Keep it serial . The recipe is simple when each the phase is executed in the correct order. Modifying the sequence will result in “redo’s” or a non integrated baseline Keep it real . Although each project is unique, the process to develop a baseline is not. Adapt the core serial process to your specific application [email_address]

8. The Planning Process Major planning phase/emphasis Product 1. Scope of the project Statement of Work Integrated Management Plan 2. Development Approach Integrated Product Team (IPT) Organization Breakdown Structure 3. Organize the work Work Breakdown Structure (WBS) WBS Dictionary 4. Assign the Work Responsibility Assignment Matrix 5. Schedule the Work Integrated Critical Path Networks Integrated Master Schedule Key Interfaces (Receivables/Deliverables) [email_address]

9. The Planning Process Major planning phase/emphasis Product 6. Identify Resources Work Packages/Planning Packages Labor, Material, ODC, Subcontract, 7. Estimate the Cost the Work Current forward pricing rates, Time-phased (monthly) cost profile 8. Negotiate and approve plan Control Account Plan concurred by Project Control Account Manager (PCAM), Project Manager and Line Manager (or IPT lead) 9. Develop Earning Methodology BCWP ‘algorithmic earning’ consistent with BCWS profile [email_address]

10. Sample 1 Project Planning Process Figure 1. Project that employed Integrated Product Teams and Integration Master Plans and Integrated Master Schedules [email_address]

11. Sample 2 Project Planning Process Figure 2. Project that employed tradition ‘matrix’ approach [email_address]

12. [email_address] ‘ In preparing for battle I have always found that plans are useless, but planning is indispensable.’ Dwight D. Eisenhower

13. Schedule the Process Develop an end-to-end schedule for the planning cycle Schedule should show interdependencies between phases and phase products Determine appropriate period of performance for the phases based on customer requirements First submittal of performance reports IBR date Schedule is a communication vehicle Ensure responsibilities are delineated Clearly identify due dates Include data review and approval cycle in planning process [email_address]

14. ‘ Waterfall’ Planning Schedule Task Name Responsible Time Line Set-up Bus team (people, process, tools) in place Bus Lead Develop Phase CD Planning Guidelines Bus Lead Approval of Phase CD Planning Guideline Project Mgr Issue Phase CD Planning Guidelines Bus Lead Conduct Planning Kick-off Meeting Bus Lead Planning Infrastructure Identify Project Team and CAMS Project Mgr Map team to Initial Project WBS Bus Lead Develop Responsibility Assignment Matrix Bus Lead Develop/Refine Statement of Work PCAM Develop WBS to Control Account Level PCAM Develop WBS Dictionary to Control Account Level PCAM Schedule Development Obtain Master Schedule Sched Analyst Develop CA End-to-End Critical Path Network Sched Analyst/PCAM Reconcile with Project Master Schedule Sched Analyst Identify External Hand-offs (REC/DEL) Sched Analyst/PCAM Negotiate External Hand-offs Sched Analyst/PCAM Integrated all Control Account Schedule Sched Analyst Develop and Analyze End-to-End Project Critical Path Sched Analyst Issue Final Project Schedules to Control Account Level Sched Analyst [email_address]

15. ‘ Waterfall’ Planning Schedule Task Name Responsible Time Line Resource Development Develop Work Packages Sched Analyst/PCAM Identify Resources required to execute Work Packages Sched Analyst/PCAM Develop Time-Phase Resource Plans Sched Analyst/PCAM Negotiate Resource Availability with Line Organizations Sched Analyst/PCAM Cost Development Develop Basis of Estimates for Resources PCAM Apply current forward pricing rates and factors Cost Analyst Review WP and CA time-phase cost profiles Cost Analyst/PCAM Modulate to support project constraints Cost Analyst/PCAM Review, Negotiate, Approve Plan Review Control Account Plans PM/PCAM/Line Mgr Approve Control Account Plans PM/PCAM/Line Mgr Develop final Phase CD Work Agreements Cost Analyst Finalize Plan Develop BCWP plans PCAM Verify BCWP plans consistent with BCWS plans Cost Analyst/PCAM Set Cost and Schedule Baseline Cost Analyst Reserves Analysis Cost Analyst Establish Management Reserve Log Cost Analyst Commence Change Control Bus Lead [email_address]

16. [email_address] ‘ Always start out with a larger pot than what you think you need.’ Julia Child

17. The Planning Infrastructure [email_address]

18. People Process Tools [email_address]

19. The People The project team needs to be in place prior to developing the Performance Measurement Baseline (PMB) The Players Roles and Responsibility Project Manager - Approve project plan - Proactive leadership during planning - Review and approve PMB Project Business Manager - Develop planning process (aka Deputy PM for Resources) - Brief and obtain PM approval - Responsible for all planning products for Integrated Baseline Project Control Analyst - Develop and maintain projects integrated cost database - Work with Control Account Managers in developing integrated baseline data - Produce integrated baseline cost reports - Produce cost performance reports [email_address]

20. The People The project team needs to be in place prior to developing the Performance Measurement Baseline (PMB) The Players Roles and Responsibility Project Schedule Analyst - Develop and maintain the project’s integrated schedule database - Develop and report project critical path - Work with Project Control Account Managers in the development of an integrated project schedule. Including REC/DELs Acquisitions/Subcontracts - Ensures contracts contain DRDs for submittal of integrated baseline - Negotiate deliverables to support project baseline requirements [email_address]

21. The People The project team needs to be in place prior to developing the Performance Measurement Baseline (PMB) The Players Roles and Responsibility Project Control Account Manager - Responsible for the technical, cost and (PCAM) schedule plans for control account - Develop and submit integrated schedule and cost plans (with project control and project schedule analyst support - Ensure plan is realistic and achievable - Identify cost and schedule risks IPT or Line/Resource Management - Review plan resource requirements - Work with CAM to develop an achievable resource plan - Demonstrated approval of plan [email_address]

22. The Processes The basic processes that are utilized during the life cycle of the project 0.0 Project Formulation Phase A 1.0 Organization Phase B 2.0 Scheduling Phase B 3.0 Work/Budget Authorization Phase B 4.0 Accounting Phase BCD 5.0 Indirect Management Phase BCD 6-1.0 Managerial Analysis Phase CD 6-2.0 Comprehensive Estimate-at-Completion Phase CD 7-1.0 Change Management (External) Phase BCD 7-2.0 Change Management (Internal) Phase CD 8.0 Material Management Phase BCD 9.0 Contract Management Phase BCD [email_address]

23. The Process Timeline 0.0 Project Formulation 1.0 Organization 2.0 Scheduling (develop) 3.0 Work/Budget Authorization KDP-B Phase A Phase B 6-1.0 Managerial Analysis 6-2.0 Comprehensive EAC 7-2.0 Change Management (Internal) 4.0 Accounting (accounts set up Ph B, ACWP in Ph CD) 5.0 Indirect Management (planning and EACs) 7-1.0 Change Management (External) 8.0 Material Management 9.0 Contract Management Phase CD KDP-C Phase E KDP-E 2.0 Scheduling (status) [email_address]

24. The Tools The basic planning and management tools needs to be in place prior to developing the Performance Measurement Baseline (PMB) The Tool Function Scheduling Control Module - Repository for projects integrated schedule - Reports project critical path - Stores and reports REC/DELs - Support JCL requirements Cost Control Module - Repository for projects integrated cost - Baseline, ACWP, ETC, EAC - Calculates BCWP - Produce integrated baseline cost reports - Produce cost performance reports Accounting System - Official book of accounts - Captures all actual costs by project [email_address]

25. The Tools Additional planning and management tools needed to be in place prior to developing the Performance Measurement Baseline (PMB) The Tool Function Quantifiable Back-up Data - Derive EV % complete (QBD) - Used when schedule is not used to derive % - Under baseline control Front End Planning Aides - Budgetary planning tools that act as a feeder to cost control system module Risk Management Tool - Repository for project risks - Used in developing Management Reserve position for the project [email_address]

26. The Tools (data sets) Standard ‘global files’ should be in place prior to developing the Performance Measurement Baseline (PMB) The Tool Function Resource Breakdown Structure - Resource structure from line organization or IPTs (RBS) - Standard resource classifications - Standard direct rates Indirect Rate Structure - Standard/approved forward pricing rates/factors - Appropriate burdening scenarios (overhead/g&a) Organization Breakdown Structure - Line Management Structure or IPTs (OBS) - Skill centers and service centers Accounting Calendar - Common monthly calendar for Account System and Cost Control Module [email_address]

27. [email_address] ‘ I skate to where the puck is going to be, not where it is.’ Wayne Gretzky

28. Where is the puck going? What to expect [email_address]

29. NPR 7120.5d Business Requirements [email_address]

30. Business Products for Phase A Phase A Preliminary Project Plan Cost and schedule controls Phase A Work Agreements Preliminary Integrated Baseline NASA Standard WBS (to WBS Level 3) WBS Dictionary Integrated Master Schedule Life cycle cost estimate Preliminary life-cycle cost estimates includes reserves Workforce estimate Phase B Work Agreements [email_address]

31. NPR 7120.5d Business Requirements [email_address]

32. Business Products for Phase B Phase B Final and approved Project Plan Cost and schedule controls Integrated Baseline Reviews for all contractors with life cycle cost greater than $20M Includes Prime contractors second tier subcontractors Phase C Work Agreements Final Integrated Baseline NASA Standard WBS to Control Account/Work Package WBS Dictionary to Control Accounts Integrated Master Schedule Includes Tier 1 Master Schedule End-to-end integrated Critical Path Network Life cycle cost estimate Preliminary life-cycle cost estimates includes reserves Workforce estimate [email_address]

33. Implementation 15 Month Timeline KDP-C Phase B Phase C Transitioning from Phase B to Phase C The first year of Phase C Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr -1 Project PDR Integrated Baseline Reviews of contractors Adjustments to final integrated baseline Prepare Phase CD Work Agreements Establish budget logs Data and process normalization period Begin monthly cadence Incorporate ACWP Incorporate BCWP Process and review for anomalies Generate CPR Format 1 Run through three monthly cycles Make corrections as required Commence customer reporting Analyze performance trends (CPI SPI) Commence ETC maintenance Review variances Exercise cost and schedule change control process Variance Analysis Reporting Analyze performance trends (CPI SPI) Estimate to Complete (ETC) maintenance Budget to Complete (BTC) Maintenance Reserve utilization and attrition analysis VAR Correction Actions Tracking Analyze performance trends (CPI SPI) Comprehensive annual EAC Variance at Complete analysis Reserve utilization and attrition analysis [email_address]

34. Total Project Earned Value Performance Trends

35. Total Project Earned Value Performance Trends Cost Performance Index (CPI) Schedule Performance Index (SPI) $224M $253M $233M IEAC

36. [email_address] ‘ Efforts and courage are not enough without purpose and direction’ John F. Kennedy