Designing the Program Structure and Organization

1. Designing the Program Structure and Organization Felix Sanchez Project Management for ARA Engineers and Scientists

2. Desired 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 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 Management Program Organization Work Breakdown Structure (WBS) • Organization: Define contractual effort and assign responsibility for work. • Planning and Budgeting: Plan, schedule, budget and authorize work. • Cost Reporting: Accumulate cost of work and material. • Analysis: Compare planned and actual costs to performance and analyze variances. Develop estimates of final cost. • Close Out: Ensure within cost and schedule and market follow-on efforts. Budget (Resource Loaded Network) Task Definition Schedules Cost Reporting Performance Measurement Estimate at Completion (EAC) Performance Measurement Variance Analysis Reports (VAR) Close Out Close Out

5. Step 1 – Define the Program Structureby 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

6. Complex 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

7. 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.

8. 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

9. The Complete Work Breakdown Structure for A/C – Example Aircraft System Level 1 Level 2 Initial Spares and Initial Repair Parts System Engineering/ Program Management Air Vehicle Support Equipment System T&E Op/Site Activation Manufacturing Data Training Logistics 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 System Assembly, Installation and Checkout on Site Contractor Tech Support Site Construction Level 3 Tech Pubs Engrg Data Support Data Mgt Data Data Depository Test and Measurement Equipment Support and Handling Equipment DT&E OT&E Mockups T&E Support Test Facilities Equipment Services Facilities (Per Mil Std Handbook - 881)

10. Example: WBS Numbering System

11. ARA Sample: WBS for S/W Program Table 1. Work Breakdown Structure for IMEA 8.0, Phase 1 Note: full version of IMEA WBS in Resource Section of E-Book

12. WBS Index Format – Maybe a CDRL Requirement Program RFP No. __________________ Date Contract Work Breakdown Structure Index Contract No. ______________ 1 2 3 . 4 5 6 7 8 Material Contract SOW/ Specification Contract End Contract Work Breakdown Structure Program Line Item PDTP No. Item No. Element/Tasks Line No. Code & PARA No. RDT&E Prod. CWBS Code 1 2 3 4 5 6 (Level) 10 11 12 13 X 0001 Total Aircraft System X 1000 Air Vehicle X 1100 Air Frame X 1110 Basic Structure X 1111 Forward Fuselage X 1112 Center Fuselage X 1113 Aft Fuselage X 1114 Wing X 1115 Empennage X 1120 Landing Gear X 1130 Hydraulics X 1200 Propulsion (this is a government form) X 1300 Air Vehicle Applications Software 1400 Air Vehicle System Software X X 1500 Communications/Identification X 1600 Navigation/Guidance X 1700 Central Computer X 1800 Fire Control X 1900 Data Display and Controls X 2000 Systems Engineering/Program Management X 3000 System Test and Evaluation X 3100 Development Test and Evaluation X 3200 Operational Test and Evaluation X 3300 Mock-Ups X 3400 Test and Evaluation Support X 3500 Test Facilities

13. 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

14. Compliance WBS vs. SOW Matrix Sample For smaller projects, this could be Phases, Tasks and Subtasks Excel WBS template provided in simulation exercise 2a handout

15. Summary 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 • 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 WBS WBS drives the organization design to manage the program

16. Five Elements for Program Management Program Organization Work Breakdown Structure (WBS) • Organization: Define contractual effort and assign responsibility for work. • Planning and Budgeting: Plan, schedule, budget and authorize work. • Cost Reporting: Accumulate cost of work and material. • Analysis: Compare planned and actual costs to performance and analyze variances. Develop estimates of final cost. • Close Out: Ensure within cost and schedule and market follow-on efforts. Budget (Resource Loaded Network) Task Definition Schedules Cost Reporting Performance Measurement Estimate at Completion (EAC) Performance Measurement Variance Analysis Reports (VAR) Close Out Close Out

17. Step 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

18. Organization Driven by WBS • Program organization where WBS Level 2 performance reporting required • Team organization where WBS Level 3 reporting required Program Manager Team Leaders responsible for work/budgets at WBS Level 2 Team Leader #2 Team Leader #1 Team Leader #3 Team Leaders responsible for work/budgets at WBS Level 3 Task Leader #2 Task Leader #3 Task Leader #1

19. Does the Project Require 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.)

20. What and Who are 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

21. Typical Earned Value Organization Program Manager Technical Manager Business Manager CAM CAM CAM Financial Control Planning EVM Subcontract Mgt Task leader 5 Task Leader 1 Task Leader 3 Task Leader 2 Task Leader 6 Task Leader 4 Note: Control Account Manager (CAM) (e.g., analogous to Team Leader)

22. ARA Organization for S/W Program Sample DTRA SAM Program Manager A&AS D. Hope Project Manager (PM) A. York Management Oversight • Develop program plans • Customer interface • Earned value tracking • Deliverable management ARA TechnicalStaff B. Roth Principal Investigator (PI) D. Hope IWMDT/NuCS Integration R. Chase Subcontracts Mgr Team Members • John Incerti • Dave Willet • Paul Edwardson • Aaron Bray • Chris Volpe • … • 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 Subject Matter Experts Your organization can be tailored to your project and customer

23. S&T Org, M&S Committee, NRL, … JCREW S&T Lead Ray Irwin ARA Organization for Smaller Projects Example JIEDDO Customer Project Management AlbericoMenozzi PI ARA Stakeholders Technical Team Support M. BuffRF Prop/SoilsVadum K. MatsonSoils/CONOPSARA J. MacKenzie Tech. Writer ARA W. Judge3D SNE Models ARA S. FrankSim test bedray-tracing, ARA B. MarchandGIS ExpertARA A. Peruggisoftware supportARA M. HardyD.O.E./statisticsARA

24. Integrated Product Team Organization Program Manager Manufacturing IPT Test IPT Design IPT Note: IPTs mirror WBS structure

25. Advanced Spectroscopy ProgramOrganization – 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

26. Sample Organization Designfrom ARA’s Advanced Spectroscopy Program Proposal Figure M-3. The ARA Team’s IPT approach provides clear mapping of TI Tasks and WBS elements to people in the organization, ensuring clear lines of authority and accountability.

27. Summary: 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 success of the four elements of Program Management

28. Leadership and Good Management Essential to Project SuccessDefining WBS and Organization are First Steps Deltek, EVM Compare Cost to Budget