Felix Sanchez

Designing the Designing the Program Structure Program Structure and Organizationand Organization

Project Management for ARA Engineers and Scientists

2

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

3

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

4

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