Project Management Cost and Schedule Nadine Kurita ANSIEIA748

Project Management Cost and Schedule Nadine Kurita ANSI/EIA-748 -A Standard for Earned Value Management Systems Organization Planning, scheduling and budgeting Accounting considerations Analysis and management reports Revisions and data management (not covered) EVMS surveillance LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Contributers Patricia Mast (LCLS, Aim Corporation - Deltek) Jeff Chan (LCLS, Aim Corporation - Deltek) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

EVMS Organizational Breakdown Structure (OBS) J. Hastings Project Director PMCS B. Foyt – Project Manager H. Leung N. Kurita Chief Engineer WBS 1. 2 XPP R. Pope LUSI DOE Review July 23, 2007 PMCS WBS 1. 3 CXI J. C. Castagna - acting WBS 1. 4 XCS N. Kurita – acting WBS 1. 5 Diagnostics N. Kurita WBS 1. 6 Controls & Data System G. Haller Nadine Kurita kurita@slac. stanford. edu

EVMS Organization Work Breakdown Structure (WBS) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

EVMS Organization Responsibility Assignment Matrix In process LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Planning, Scheduling and Budgeting (2) Earned value performance. LUSI Project Management Cost & Schedule (PMCS) system is based on, B-Factory Project - 2000 Award for the Program and Project Management SPEAR 3 – 2004 Secretary's Excellence in Acquisition Award GLAST LCLS 60% CAMS previous experience in PEP-II, SPEAR 3, GLAST and/or LCLS System requirements D. O. E. Order 413. 3 A “Program and Project Management” ANSI/EIA-748 -A Standard for Earned Value Management Systems LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Planning, Scheduling and Budgeting Documentation LCLS 1. 1 -018 Control Account and Work Package Planning LCLS 1. 1 -020 Project Schedule LCLS 1. 1 -021 Cost Estimating LCLS 1. 1 -015 Earned Value Management System Description LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

PMCS CAM Chief Engineer Project Director Cost Estimate LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Detailed Cost Estimate Report (DCE) Product – sample report LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

PMCS CAM Chief Engineer Project Director DOE SSO Project Schedule LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Project Director Engineer PMCS CAM Chief DOE SSO Project Schedule LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Milestone Hierarchy Defined Level 1, 2, 3 and 4 Milestones Level 1 controlled by DOE HQ Level 2 controlled by DOE Stanford Site Office Level 3 controlled by LUSI Project Director Level 4 controlled by System Manager Level 1 -3 Milestones are under formal CCB control LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Work Authorization LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Resource Loaded Schedules Integrate schedules LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Accounting Considerations All financial transactions are documented, approved, and recorded properly in the financial accounting system on a consistent and timely basis in accordance with Generally Accepted Accounting Principles (GAAP) and applicable Cost Accounting Standards. Actual costs are collected from the financial accounting systems and imported into the EVMS each month. Actuals are collected in the EVMS in four basic cost elements Labor Non-Labor (materials, Subcontracts, etc) Shops Travel Direct and indirect costs are recorded in a manner consistent with the budgets. LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Analysis and Management Reports Documentation LCLS 1. 1 -015 Earned Value Management System Description LCLS 1. 1 -022 Monthly Status and Reporting LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

PMCS CAM Chief Engineer Project Director Monthly Status and Reporting LUSI DOE Review July 23, 2007 PMCS 17 Nadine Kurita kurita@slac. stanford. edu

PMCS CAM Chief Engineer Project Director Monthly Status and Reporting LUSI DOE Review July 23, 2007 PMCS 18 Nadine Kurita kurita@slac. stanford. edu

CPR Drilldown (Level 2) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

CPR Drilldown (Level 3) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

CPR Drilldown (CA Level) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

CPR Drilldown (Milestone Level) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

CPR Drilldown (Labor Detail) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

CPR Drilldown (Cost Detail) LUSI DOE Review July 23, 2007 PMCS 24 Nadine Kurita kurita@slac. stanford. edu

Variance Analysis Form LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

LCLS PMCS Utilities (The Hammer) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

BCWS, BCWP, ACWP Report (SPA) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Obligation Report (OSCUM) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Total Float Report Level 3 milestones LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

7. Utility tools for CAMS and management. View Gant charts, plot performance, trending reports, CPR drilldown 4. Actual cost and commitments are collected, via code of accounts, at the 3 rd or 4 th level of the WBS 1. The cost estimating information was transferred to Primavera for initial budget & obligation time-phasing 5. Accounting files are transferred electronically to the PMCS group and imported into Cobra. Reconciled every month. 2. Progress information is gathered from the CAMS and input into the scheduling system for baseline variance and critical path analysis 3. Progress information is transferred from the scheduling system into the cost processor for Earned Value calculations 6. Technical/Cost/Schedule Baseline changes are controlled and documented through the change control process LUSI DOE Review July 23, 2007 PMCS 7. Utility tools for CAMS and management. View Gant charts, plot performance, trending reports, CPR drilldown Nadine Kurita kurita@slac. stanford. edu

Surveillance Continuous self assessment is performed by the project director, and project controls personnel, who are trained in the correct use of the LCLS EVMS, and are held accountable for proper implementation. Conduct external audit yearly LCLS 1. 1 -024 Surveillance of EVMS LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Summary Consistent with the 32 critical criteria as described in ANSI/EIA-748 -A Applying the existing LCLS documentation for Planning, scheduling and budgeting Accounting considerations Analysis and management reports Revisions and data management PMCS staff is from LCLS CAMS have experience with PMCS – training will continue to ensure compliance with the ANSI standard Have a detailed resource loaded schedule for CD 4 a deliverables Detailed resource loaded schedule for the remainder items in process Need to work on the interface with partner labs LUSI staff is ready to baseline the project! LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

End of Presentation LUSI DOE Review July 23, 2007 PMCS 33 Nadine Kurita kurita@slac. stanford. edu

Execution and Control Project Office Monthly Reporting Contents Cost Drill Down Approach Top Level SPA Chart Cost Report – WBS Level 2 (C/SSR) System Level Cost Report – WBS Level 3 Work Package Detail Cost Report Detailed Accounting Report Schedule Drill Down Approach Top Level Cost Report – WBS Level 2 System Level Cost Report – WBS Level 3 Work Package Detail Cost Report Detailed Schedule Report Traditional Schedule Analysis Critical Path, Detailed Baseline Schedule Variance Comparison, Milestone Chart LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Revisions and Data Management Documentation LCLS 1. 1 -015 Earned Value Management System Description LCLS 1. 1 -019 Change Control LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Revisions and Data Management Level 4 up to 100 K, system Level 3, project office LUSI DOE Review July 23, 2007 PMCS 37 Nadine Kurita kurita@slac. stanford. edu

CCB Presentations PBCR presentations to the CCB will address the following; Background Problem Solution Other Solutions Considered Stakeholders Review Other System Managers, Int/Inst, QA, Accel Team, QA, Linac Dept Hd (if applicable) Impact of this BCR (technical, resources, funding, etc. ) Must this come from contingency? Any impact to L 2 or L 3 milestones? Integrated Schedule Analysis Impact of not approving this BCR Affected drawings, parts or requirements Is there anything else we should know? LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Revisions and Data Management LUSI DOE Review July 23, 2007 PMCS 39 Nadine Kurita kurita@slac. stanford. edu

BCR Form LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Revisions and Data Management LUSI DOE Review July 23, 2007 PMCS 41 Nadine Kurita kurita@slac. stanford. edu

Approval Thresholds LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Resource Breakdown Structure 1 2 3 4 RBS BE 1 WBS 2 3 4 5 5 1 2 3 LUSI DOE Review July 23, 2007 PMCS FUND Nadine Kurita kurita@slac. stanford. edu

Accounting Considerations Direct and indirect costs can be summarized from control accounts into the WBS without allocation of a single control account to more than one WBS element. Direct and indirect costs can be summarized by the project’s organizational elements without allocation of a single control account to more than one organizational element. Indirect costs are applied to each project at the current approved annual rates. Encumbrances are recognized at the point an approved order is placed. Equipment and material costs enter the general ledger through the accounts payable system. Retroactive adjustments to previously reported actual costs are prohibited. Adjustments are reported monthly, consistent with GAAP. LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

More on reporting LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Milestone Dictionary LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Responsibility Assignment Matrix (RAM) LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Corrective Action Log LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Estimate at Complete (EAC) LUSI DOE Review July 23, 2007 PMCS 50 Nadine Kurita kurita@slac. stanford. edu

Risk Registry LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

CCB Log of Proposed BCRs LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

PMCS Baseline Development Step 1 Detailed Schedule Development Step 2 Schedule Integration Step 3 Establish the Performance Measurement Baseline Step 4 Funding Reconciliation Step 5 Integrate the Cost and Schedule Baseline LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

PMCS Baseline Development (2) STEP 1 – Detailed Schedule Development 100% of scope covered for CXI and XPP Simplest approach is to schedule the WBS Logic-driven schedule networks Consistent use of calendars, units and resources for reliable calculations Identify interfaces (Needs and Avails) with other systems Proper activity coding for reporting and summarization LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

PMCS Baseline Development (3) STEP 3 – Establishing the PMB Develop the work packages Cost load the schedule to establish the budget and obligation profiles Identify performance measurement techniques STEP 4 – Funding Reconciliation Typically, the ‘bottoms-up’ plan yields a different funding requirement than what has already been established from the ‘Top -down’, requiring schedule iterations Identify and correct funding issues at lowest level of detail plan fit within the existing funding constraints LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

PMCS Baseline Development (4) STEP 5 – Integrate Cost/Schedule Baseline LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu

Resource Breakdown Structure 1 2 3 4 RBS BE 1 WBS 2 3 4 5 5 1 2 3 LUSI DOE Review July 23, 2007 PMCS FUND Nadine Kurita kurita@slac. stanford. edu

Green : CPI or SPI between 0. 90 and 1. 15 Yellow: CPI or SPI between 0. 85 and 0. 89 Red: CPI or SPI below 0. 85 or above 1. 25 Blue: CPI or SPI between 1. 16 and 1. 25 The ones that aren't shaded in are variances that are less than $10, 000 (too small to worry about). These thresholds (except for the Blue one) are the same as the PARS System thresholds. We require our CAMs to write VARs for all reds, yellows and blues at WBS level 3. LUSI DOE Review July 23, 2007 PMCS Nadine Kurita kurita@slac. stanford. edu