Felix Sanchez
Designing the Designing the Program Structure Program Structure and Organizationand Organization
Project Management for ARA Engineers and Scientists
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Desired Learning ObjectivesDesired Learning Objectives Describe and discuss the benefits and use of WBS for
planning work, tracking the work and reporting the cost Recognize how to organize a team for various projects
and relationship of WBS and organization Introduce students to EVMS principles and their
applications for tracking and controlling projects Student exercise 2a and 2b:
• Be able to construct a WBS
• Identify and explain how to
design an organization to
execute a program
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PM Course OverviewPM Course Overview PM Responsibilities Define the Program Structure
• Review SOW Scope
• Design the WBS – Driven by SOW
Design the Team Organization• Driven by WBS or by Customer
(IPT, Contract Requirements, etc.)
• Driven by Size of Project/Cost
Design the Plan and Schedule• Integrated Master Plan
• Integrated Master Schedule
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Five Elements for Program ManagementFive Elements for Program Management1. Organization: Define contractual effort and assign responsibility for work.
2. Planning and Budgeting: Plan, schedule, budget and authorize work.
3. Cost Reporting: Accumulate cost of work and material.
4. Analysis: Compare planned and actual costs to performance and analyze variances. Develop estimates of final cost.
5. Close Out: Ensure within cost and schedule and market follow-on efforts.
Work Breakdown Structure (WBS)
Program Organization
Task Definition
SchedulesBudget (Resource Loaded Network)
Cost Reporting
Performance Measurement
Variance Analysis Reports (VAR)
Estimate at Completion (EAC)
Close Out
Performance Measurement
Close Out
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Step 1 – Define the Program StructureStep 1 – Define the Program Structureby Defining the Scope and Tasks (i.e. WBS)by Defining the Scope and Tasks (i.e. WBS)
Review SOW Account for Proposal Commitments Useful Tools:
• Work Breakdown Structure (WBS)∙ Carves up a large and complex project into smaller, more easily managed steps∙ Can also be a good reporting tool∙ Note that not all customers or contracts require a formal WBS –
customers do want insight into what tasks comprise your total effort• Budget Bogey from Customer
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Complex ProjectsComplex Projects
Use a Work Breakdown Structure (WBS)• Break into smaller, more manageable chunks of work
• Usually structure around deliverables or products
• Good when you have vastly different activities going on and/or various Divisions working in parallel
Use of WBS• Protects you and ARA from errors of oversight in planning
• Enhances cost estimates fidelity
• Allows greater insight on process tracking
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What is a Work Breakdown Structure (WBS)?What is a Work Breakdown Structure (WBS)? Identifies the lowest level at which work is managed A product-oriented family tree which completely
defines the project/program and is composed of:• Hardware
• Software
• Services (program management,
maintenance, logistics, etc.)
• Data
• Manufacturing
• Etc.
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What About Small Projects?What About Small Projects?
The WBS is analogous to Phases and
tasks used in ARA with BST WBS not required or feasible if the work is straight
forward and not many varying tasks within one Division Good Practice: Assigning phases, tasks and subtasks
(analogous to WBS levels 1, 2, 3) from a SOW in order to plan the work down to the task level
We will show how to use WBS (or Phases, Tasks, Subtasks) in BST to track costs on your project
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The Complete Work Breakdown Structure The Complete Work Breakdown Structure for A/C – Example for A/C – Example
Aircraft System
Op/Site Activation
ManufacturingDataSupport
EquipmentTraining LogisticsSystem
T&E
System Engineering/
Program Management
Level 1
Level 2
Air Vehicle
Initial Spares and
Initial Repair Parts
Airframe
Propulsion
Application Software
System Software
Communications
Navigator/Guidance
Central Computer
Fire Control
Data Display and Controls
Survivability
Automatic Flight Control
Central Integrated Checkout
Antisubmarine Warfare
Armament
Weapons Delivery
Auxiliary Equipment
DT&E
OT&E
Mockups
T&E Support
Test Facilities
Equipment
Services
Facilities
Tech Pubs
Engrg Data
Support Data
Mgt Data
Data Depository
Test and Measurement Equipment
Support and Handling Equipment
System Assembly, Installation and Checkout on Site
Contractor Tech Support
Site Construction
Level 3
(Per Mil Std Handbook - 881)
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Example: WBS Numbering SystemExample: WBS Numbering SystemWBS Element Number
0001 Total Aircraft System1000 Air Vehicle
1100 Air Frame1110 Basic Structure
1111 Forward Fuselage1112 Center Fuselage1113 Aft Fuselage1114 Wing1115 Empennage
1120 Landing Gear1130 Hydraulics
1200 Propulsion1300 Air Vehicle Applications Software1400 Air Vehicle System Software1500 Communications/Identification1600 Navigation/Guidance1700 Central Computer1800 Fire control1900 Data Display and Controls
2000 Systems Engineering Program management3000 System Test and Evalluation
3100 Development Test and Evaluation3200 Operational Test and Evaluation3300 Mock-ups3400 Test and Evaluation Support3500 Test Facilities
ETC.1 2 3 4 Level 1 2 3 4 5
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ARA Sample: WBS for S/W ProgramARA Sample: WBS for S/W Program
WBS ID Description
20 0200 CXSS Design and Integration
20 0201 Interface with operational/tactical planning tools
20 0202 Automate CDET spreadsheet methodology
20 0203 Maintain HPAC interface
20 0204 Reduce run times
20 0205 CLCL updates
20 0206 Make menu and icon buttons consistent
20 0207 Enhance report generator
20 0208 Simplify GUI in the building model properties wizard
20 0209 Add ability to import STMG targets
20 0210 Use JWS for weapon data
20 0211 Interface with RainDrop
21 0200 CXSH Design and Integration
21 0201 WMD facility functional defeat model
21 0202 Improved rock mass stability model
Table 1. Work Breakdown Structure for IMEA 8.0, Phase 1
Note: full version of IMEA WBS in Resource Section of E-Book
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WBS Index Format – Maybe a CDRL RequirementWBS Index Format – Maybe a CDRL RequirementRFP No. __________________
Contract No. ______________
Date
ContractLine Item
SOW/PDTP
PARA No.
SpecificationNo.
Contract EndItem No.
10 11 12 13
2 3
Contract Work BreakdownStructure Index
Program
Lin
e N
o. Contract Work Breakdown Structure
Element/Tasks
MaterialProgramCode &
CWBS Code RD
T&
EP
rod
.
(Level)
7 8
1
54
1 2 3 4 5 6
6
0001 Total Aircraft System 1000 Air Vehicle 1100 Air Frame 1110 Basic Structure 1111 Forward Fuselage 1112 Center Fuselage 1113 Aft Fuselage 1114 Wing 1115 Empennage 1120 Landing Gear 1130 Hydraulics 1200 Propulsion 1300 Air Vehicle Applications Software 1400 Air Vehicle System Software 1500 Communications/Identification 1600 Navigation/Guidance 1700 Central Computer 1800 Fire Control 1900 Data Display and Controls 2000 Systems Engineering/Program Management 3000 System Test and Evaluation 3100 Development Test and Evaluation 3200 Operational Test and Evaluation 3300 Mock-Ups 3400 Test and Evaluation Support 3500 Test Facilities
XX
XX
XXXXX
XX
XXXXXXXX
X
XXXXXX
(this is a government form)
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How do we Develop the WBS?How do we Develop the WBS? Do a line-by-line review of program requirements (SOW) Create a comprehensive compliance matrix, assigning each
SOW paragraph to a WBS element (For smaller projects – assign SOW paragraph to a Phrase, Task or Level)
• Ensures that all requirements are accounted for in your costing and responsibility assignments
• Identifies necessary additions to get final product• Clarifies various tasks
Define the work for each element• For large projects, build a WBS dictionary to explicitly define what is
included in that element and to inform everyone exactly what SOW scope is captured under each WBS element
• For small projects, a WBS dictionary not required but a description or definition of work element (Tasks) is required for the ARA Project Plan
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Compliance WBS vs. SOW MatrixCompliance WBS vs. SOW MatrixSampleSample
WBS Element Number SOW Para.
0001 HEL TSTM System including everything associated with the System 1000 HEL Target Surface Temp Measurement Item 3.1.1.1 and 4.1.1
1100 Subsystem 11110 Hardware Design 3.1.1.x.x.
1120 Software 3.1.1.y.y
1200 Subsystem 21210 Hardware Design etc
1220 Software 1300 Subsystem 3
1310 Hardware Design1320 Software
2000 Systems Engineering/ Program Management2100 Program Management 3.2
2110 xxxxx 3.3
2120 yyyyyy 3.5
For smaller projects, this could be Phases, Tasks and Subtasks
Excel WBS template provided in simulation exercise 2a handout
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Summary of WBSSummary of WBS A product-oriented family tree composed of hardware,
software, services and data which completely defines the project/program
Cornerstone/Foundation for the development of cost/schedule tracking
WBS drives the organization design to WBS drives the organization design to manage the programmanage the program
WBS
• Logical flow of the work to be accomplished• Provides a framework for structured
cost/schedule reporting• Aids in tracking and summarizing
performance measurement data• System for summarizing cost and schedule
data into successively higher levels
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Five Elements for Program ManagementFive Elements for Program Management1. Organization: Define contractual effort and assign responsibility for work.
2. Planning and Budgeting: Plan, schedule, budget and authorize work.
3. Cost Reporting: Accumulate cost of work and material.
4. Analysis: Compare planned and actual costs to performance and analyze variances. Develop estimates of final cost.
5. Close Out: Ensure within cost and schedule and market follow-on efforts.
Work Breakdown Structure (WBS)
Program Organization
Task Definition
SchedulesBudget (Resource Loaded Network)
Cost Reporting
Performance Measurement
Variance Analysis Reports (VAR)
Estimate at Completion (EAC)
Close Out
Performance Measurement
Close Out
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Step 2 – Define the OrganizationStep 2 – Define the Organization Organization Structure
• Driven by WBS
• Driven by Customer (earned value management, IPT, contract requirements, etc.)
• Driven by Size of Project or Cost
Clear chain of reporting and accountability to Task Leaders
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Organization Driven by WBSOrganization Driven by WBS Program organization where WBS
Level 2 performance reporting required
Team organization where WBS Level 3 reporting required
Team Leaders responsible for work/budgets at WBS Level 2
Team Leaders responsible for work/budgets at WBS Level 3
Program Manager
Team Leader #1
Team Leader #2
Team Leader #3
Task Leader #1
Task Leader #2
Task Leader #3
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Does the Project Require Does the Project Require Earned Value Management (EVM)?Earned Value Management (EVM)?
Earned Value Management is a performance measurement system:• “Where do you stand schedule-wise?”
∙ Tracks the amount of planned/scheduled work that has been completed• “Are you getting your money’s worth for the effort to date?”
∙ Tracks the accomplishment of planned work
“Tailored” EVM covered in later module
Note: As of July 5, 2006, the Federal Acquisition Regulations were changed to allow EVM on all projects, including the Department of Transportation. The dollar threshold is decided by each agency. In 2008, FARs require for all projects over $20M. (ARA has seen requirements on projects as small as $1.0-2 million.)
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What and Who are What and Who are Control Account Managers (CAM)?Control Account Managers (CAM)?
For EVM by definition, the “Control Account Manager (CAM)” is responsible for cost, schedule and performance for: • WBS Level 1 reporting, Program Manager is CAM
• WBS Level 2 reporting, Team Leader for WBS Level 2 is CAM
• WBS Level 3 reporting, Task Leader for WBS Level 3 is CAM
The specific Control Account (Task Account) is defined by you for your project• Based on reporting requirements
• Based on how much you want to delegate to who
• Based on “what makes sense” is the right level to track cost, schedule and performance
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Typical Earned Value OrganizationTypical Earned Value Organization
Program Manager
Business Manager Technical Manager
Subcontract Mgt Planning Financial Control
EVMCAM CAMCAM
Task Leader 2
Task Leader 1
Task Leader 4
Task Leader 3
Task Leader 6
Task leader 5
Note: Control Account Manager (CAM) (e.g., analogous to Team Leader)
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ARA Organization for S/W ProgramARA Organization for S/W ProgramSampleSample
A&AS A&AS
DTRA SAM Program Manager
DTRA SAM Program Manager
B. RothB. RothPrincipalPrincipalInvestigator (PI)Investigator (PI)
B. RothB. RothPrincipalPrincipalInvestigator (PI)Investigator (PI)
D. HopeD. HopeIWMDT/NuCSIWMDT/NuCS
IntegrationIntegration
D. HopeD. HopeIWMDT/NuCSIWMDT/NuCS
IntegrationIntegration
A. YorkManagement
Oversight
A. YorkManagement
Oversight
R. ChaseR. ChaseSubcontracts MgrSubcontracts Mgr
R. ChaseR. ChaseSubcontracts MgrSubcontracts Mgr
• IPT lead• Organize HARP
Tasking• Block Planning• Block execution
oversight• SME
Management
• Block Planning• Execute Blocks• Manage Software
Development processes
• Main interface to subs
• Issues tasks• Asses status• Earned-value
management
TeamMembersTeamMembers
D. HopeProject Manager (PM)
D. HopeProject Manager (PM)
• Develop program plans• Customer interface• Earned value tracking• Deliverable management
Subject Matter Experts
ARAARATechnicalTechnicalStaffStaff
ARAARATechnicalTechnicalStaffStaff
• John Incerti• Dave Willet• Paul Edwardson• Aaron Bray• Chris Volpe• …
Your organization can be tailored to Your organization can be tailored to your project and customeryour project and customer
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ARA Organization for Smaller ProjectsARA Organization for Smaller ProjectsExampleExample
Technical Team Technical Team
K. MatsonSoils/CONOPSARA
K. MatsonSoils/CONOPSARA
Project Management
Project Management
Alberico MenozziPIARA
Alberico MenozziPIARA
JIEDDO CustomerJIEDDO Customer
JCREW S&T LeadRay Irwin
S. FrankSim test bedray-tracing, ARA
S. FrankSim test bedray-tracing, ARA
B. MarchandGIS ExpertARA
B. MarchandGIS ExpertARA
SupportSupport
J. MacKenzieTech. WriterARA
J. MacKenzieTech. WriterARA
W. Judge3D SNE Models ARA
W. Judge3D SNE Models ARA
A. Peruggisoftware supportARA
A. Peruggisoftware supportARA
M. HardyD.O.E./statisticsARA
M. HardyD.O.E./statisticsARA
M. BuffRF Prop/SoilsVadum
M. BuffRF Prop/SoilsVadum
StakeholdersStakeholdersS&T Org,M&S Committee,NRL, …
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Integrated Product Team OrganizationIntegrated Product Team Organization
Program Manager
Design IPT
Test IPT
Manufacturing IPT
Note: IPTs mirror WBS structure
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Advanced Spectroscopy ProgramAdvanced Spectroscopy ProgramOrganization – Sample Complex ProjectOrganization – Sample Complex Project
Background: Complex $250 million five-year effort for design, test and production of radiation detection portals
Manufacturing shared by ARA and very large subcontractor
WBS drove the organization and cost proposal IPT organization chosen to show seamless support by
ARA and subcontractor. IPTs track with WBS. Ten Tasks Orders in first year Task Order. Tasks track
with WBS. Production tasks started in second year
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Sample Organization DesignSample Organization Designfrom ARA’s Advanced Spectroscopy Program Proposalfrom ARA’s Advanced Spectroscopy Program Proposal
WBS
X.5 ProgramManagement
X.1 Design & Engineering
X.2 Testing
X.4 DeploymentX.3
Production
TI #1 Tasks
Task 1. ProgramManagement
Task 2. Design &
Engineering
Task 3. Technical Reviews
Task 4. Test &
Evaluation
Task 5. Pilot Support
Task 8. Logistics Support
Program ManagerDesign &
Engineering IPT
Test & Evaluation
IPT
Deployment &Logistics IPT
Production IPT
Task 7. Training Support &
Documentation
Task 6. Ops & Maint. Support Documentation
Task 9. Deployment
Support
Task 10. On-Call Tech Assist and Equip Repair
Organization
Figure M-3. The Figure M-3. The ARA Team’s IPT ARA Team’s IPT
approach provides approach provides clear mapping of TI clear mapping of TI
Tasks and WBS Tasks and WBS elements to people elements to people in the organization, in the organization,
ensuring clear ensuring clear lines of authority lines of authority
and accountability.and accountability.
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Summary: Designing the Program StructureSummary: Designing the Program Structure
SOW Drives the WBS Organizational Structure
• Driven by WBS• Driven by Customer (IPT,
Contract Requirements, EVMS, etc.)• Driven by size of project or cost• Can be tailored to your project
The right Program Structure and Organization are key to The right Program Structure and Organization are key to the success of the four elements of Program Managementthe success of the four elements of Program Management
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Leadership and Good Management Essential to Leadership and Good Management Essential to Project SuccessProject Success
Defining WBS and Organization are First StepsDefining WBS and Organization are First Steps
Deltek, EVMCompare Cost to Budget