unsw.adfa.edu.au...Your Presenters Dr Shari Soutberg has over 30 years experience in Defence, with a focus on materiel acquisition, sustainment, organisational improvement and reform

Introduction to Defence

Project Management

Dr Shari Soutberg &

Professor Mike Ryan

Your Presenters

Dr Shari Soutberg has over 30 years experience in Defence, with a focus on materiel acquisition, sustainment, organisational improvement and reform. Shari is currently an Industry Fellow at the UNSW Capability System Centre. Significant activities include development of a framework for delivery of joint force outcomes and training courses on capability development practices applicable to Defence. Prior to this, Shari was the acting Chief Systems Engineer for CASG and a member of the First Principles Review (FPR) Capability Lifecycle (CLC) team which developed capability management reform initiatives. As Director Systems Engineering and later Director Materiel Engineering in CASG, Shari led the development and implementation of Defence engineering policy and guidance, including fundamental changes arising from the WHS Act 2011. Shari provided stewardship of the Defence Engineering and Technical Job Family through establishing learning and development structures. She also supported Defence corporate engineering and technical workforce planning including industrial relations engagement. Whilst in the Office of the Parliamentary Secretary for Defence Industry, Shari was a significant contributor to the Defence Industry Policy leading to the role of Director Industry Policy. After joining the Department of Defence, Shari worked on maritime platforms and equipment and as a project manager for naval projects. Shari has a Bachelor of Engineering (Electrical), Masters of Management Economics, and a Doctor of Philosophy which addressed requirements development in Defence capability management. ([email protected])

Professor Mike Ryan holds BE, MEngSc and PhD degrees in electrical engineering from the University of New South Wales. He is a Fellow of Engineers Australia (FIEAust), a Chartered Professional Engineer (CPEng) in three colleges (electrical, ITEE and systems engineering), a Senior Member of IEEE (SMIEEE), a Fellow of the International Council on Systems Engineering (INCOSE), and a Fellow of the Institute of Managers and Leaders (FIML). Since 1981, he has held a number of positions in communications and systems engineering and in management and project management. Since 1998, he has been with the School of Engineering and Information Technology, University of New South Wales, Canberra where he is currently the Director of the Capability Systems Centre. His research and teaching interests are in communications and information systems, requirements engineering, systems engineering, project management, and technology management. He is the Editor‐in‐Chief of an international journal, and is Co‐Chair of the Requirements Working Group INCOSE. He is the author or co‐author of twelve books, three book chapters, and over 250 technical papers and reports. ([email protected])

Major Consultancies

1999 An analysis of the effect of radio‐frequency directed‐energy weapons (RF DEW) 1999 Development of an architecture for a battlespace communications system for Australian Army 2000 An analysis of the fitness‐for‐purpose of SSB mode for receive‐only Link‐11 communications 2001 An investigation into the impact of environment on a ship‐based UHF SATCOM receiver 2002 C4I study and development of technical specification for ATHOC: Athens 2004 Olympic Games 2002 Land 125 (WUNDURRA) Soldier Combat System—System Integration Study—Communications 2003 Independent validation and verification (IV&V) of NZ Joint Command and Control System (JCCS) 2003 Land 125 (WUNDURRA) Soldier Combat System—System Integration Study—Security 2004 Development of Strategy Paper for the ADF Tactical Information Exchange Environment 2005 Development of a Security Architecture for the Land Force Information Network 2005 Development of a Space Policy for the Australian Army 2005 Development of a web‐services strategy for Air Services Australia 2005 Review of functions and responsibilities for delivery of the ADF Battlespace Network 2005 Strategic appreciations for the layers of the Defence Information Infrastructure (DII) 2005‐6 Rewrite of Defence Approved Technology Standards List (ATSL) 2006 Independent validation and verification (IV&V) for JP2072 2007 Independent validation and verification (IV&V) for JP2097 2007 Systems Engineering Independent Review Team for JP2072 2007 Independent validation and verification (IV&V) for Land 75/125 BMS T&E 2007 Physical/Functional Audit Review for the Hazard Prediction Modelling and Geospatial Subsystem

2008 Development of system architecture / functional specification for Modular Engineer Force 2008 Development of CDD suite for Land 125 Phase 4 2009 Business Case for Annual Defence EW Capability Review & EW Training and Education Review 2010 JP 2089 3B—Tactical Information Exchange Domain—ARH—Requirements Workshop facilitation 2010 Rewrite of Defence Approved Technology Standards List (ATSL) 2011 IV&V for ADF EW Training Needs Analysis 2011 Review of AIR 5431 OCD 2012 Requirements Workshop for ADF Enterprise Content Management and Collaboration System 2012‐3 JP 2030 Phase 8 Ev 1 and 2 Operational Test and Evaluation (OT&E) Documentation Update 2013 IV&V for drafting of JP2089 Phase 3A Function and Performance Specification 2015 Revision of Defence Simulation Strategy and Roadmap 2015 AIR 9000 Capability Development Document Redevelopment 2015 AIR 9000 Lifecycle Cost Analysis Modelling 2016 AIR 6500 Facilitation and Modelling 2016 AIR 9000 Life cycle Modelling 2016 Lifecycle Modelling—LAND 2110 and LAND 907 2016 Land Network Integration Centre Test & Evaluation Study 2016 Land Training Areas and Ranges (LTAR) Design Facilitation 2017 SEA129 Modelling 2017 SEA1000 Through life support modelling 2017 SEA 1180 Ship Zero functions development 2017 HJCMI I2 Framework (I2F) Development 2017 HJCMI IAMD IV&V 2017 CASG Report on the Schedule Compliance Risk Assurance methodology (SCRAM) 2017 JP9101 Report ‐ Communications in a Satellite‐denied/degraded Environment 2017 JP9101 Advice on Development of OCD and FPS 2018 Development of SCRAM lessons learned database 2018 JP9101 Report – Shared Load Study 2018 SEA1180 Development of Ship Zero functional specification 2018 SEA1180 Modelling of capability transition 2018 SEA1000 Modelling of through‐life support 2018 JP9101 Expert Advisory Panel for tender CDD suite 2018 Capability Management modelling for Protected Mobility Capability Assurance Program 2018 System Specification development for Protected Mobility Capability Assurance Program 2019 Workshop for Space Situational Awareness Sub‐Program 2019 Preliminary PIOCD for Land Training Environment 2019 Functional description of AEGIS Enterprise 2019 PIOCD for Multi‐domain Training Environment 2019 PIOCD for ADF Training Environment 2019 OCD for Sea, Air, Land, Treatment and Transport (SALTT) System 2019 Naval Guided Weapons Sustainment Planning Tool 2020 Asset maintenance model 2020 Sustainment Planning Tool functional extensions 2020 Navy weapons prioritisation framework 2020 Signals workforce modelling 2020 Development of online configuration management course

Acronyms and Abbreviations AAI Accountable Authority Instructions ABL Allocated Baseline ACAT Acquisition Category ACCS Australian Capability Context

Scenarios ADF Australian Defence Force ADFA Australian Defence Force Academy ADO Australian Defence Organisation AFS Average Funded Strength AIC Australian Industry Capability AIOS Acceptance into Operational Service AIPM Australian Institute of Project

Management AJOC Australian Joint Operating Concept AMS Australian Military Strategy ANAO Australian National Audit Office ANSI American National Standards Institute APS Australian Public Service ASDEFCON Australian Standard for Defence

Contracting AT&E Acceptance Test and Evaluation BBC Better Business Case BC Business Case BoE Basis of Estimates BNR Business Needs and Requirements C2 Command and Control C4 Command, Control, Communications

and Computers C4ISR Command, Control, Communications,

Computers, Intelligence, Surveillance and Reconnaissance

CabSub Cabinet Submission CAD Computer-aided design CAE Computer-aided engineering CAM Computer‐aided manufacturing CASG Capability Acquisition and

Sustainment Group CASE Computer-aided Support

Environment CASSS Capability Acquisition and

Sustainment Support Services (Panel)

CCB Configuration Control Board CCP Contract Change Proposal CDD Capability Development Documents CDF Chief of the Defence Force CDIC Centre for Defence Industry

Capability CDMRT2 Capability Development Management

and Reporting Tool 2 CDR Critical Design Review CDRL Contract Data Requirements List CFO Chief Finance Officer CI Configuration Item CI Critical Issue CIOG Chief Information Officer Group CITE Capability Integration, Test and

Evaluation (Branch) CLC Capability Life Cycle CM Capability Manager CM Configuration Management CMGR Capability Manager Gate Review

CMS Contract Master Schedule CNC Computer numerically controlled COD Concept of Operations Document COE Centre of Expertise COI Critical Operational Issue CONOPS Concept of Operations COTS Commercial-off-the-Shelf CPN Capability Program Narrative CPR Commonwealth Procurement Rules CPSG Capability Program Steering Group CSC Computer Software Component CSCI Computer Software Configuration

Item CSU Computer Software Unit CWBS Contract Work Breakdown Structure DA Design Authority DA Design Attribute DAF Defence Architecture Framework DASR Defence Aviation Safety Regulation DC Defence Committee DCAP Defence Capability Assessment

Program DDR Detailed Design Review DID Data Item Description DIP Defence Investment Plan DLOD Defence Lines of Development DMO Defence Materiel Organisation

(obsolete post FPR) DoD (U.S.) Department of Defense DOF Department of Finance DOR Description of Requirement DOTMLPF Doctrine, organization, training,

materiel, leadership, personnel, facilities

DPG Defence Planning Guidance DPG Defence People Group DPPM Defence Procurement Policy Manual DSwMS Defence Seaworthiness Management

System DT&E Developmental Test and Evaluation DWP Defence White Paper E&IG Estate & Infrastructure Group EBC Enterprise Business Committee ECP Engineering Change Proposal eFFBD Enhanced Functional Flow Block

Diagram EIA Electronics Industry Association EMC Electromagnetic Compatibility EMI Electromagnetic Interference EPBC Environment Protection and

Biodiversity Conservation Act 1999 EtP Endorsement to Proceed FACRR Facilities Readiness Review FBL Functional Baseline FCA Functional Configuration Audit FDD Force Design Division FEA Finite element analysis FELSA Front-End Logistics Support Analysis FFBD Functional Flow Block Diagram FFBNW Fitted-for-but-not-with

FIC Fundamental Inputs to Capability FJOC Future Joint Operating Concept FMECA Failure Modes, Effects and Criticality

Analysis FOC Final Operating Capability FOE Future Operating Environment FOREX Foreign Exchange FPC Fixed price contract FPR First Principles Review FPS Function and Performance

Specification FQR Formal Qualification Review FRACAS Failure reporting, analysis and

corrective action system FSR Force Structure Review FTE Full Time Equivalent G&S Goods and Services GOTS Government off the Shelf HMI Human Machine Interface HR Human Resources HWCI Hardware Configuration Item I2 Integration and Interoperability I2F Integration and Interoperability

Framework IA Independent Assurance IAR Independent Assurance Review IBR Integrated Baseline Review IC Investment Committee ICD Interface Control Document ICT Information and Communications

Technology ICWG Interface Control Working Group IEC International Electrotechnical

Commission IEEE Institute of Electrical and Electronics

Engineers IIP Integrated Investment Program ILS Integrated Logistics Support ILSM ILS Manager ILSP ILS Plan IMS Integrated Master Schedule INCOSE International Council on Systems

Engineering IOC Initial Operating Capability IOC Integrating Operational Concept IPM Integrated Project Manager IPMP Integrated Project Management Plan IPMT Integrated Project Management

Team IPT Integrated Project/Product Team IS Interim Standard ISC Integrated Support Contractor(s) ISO International Standards Organisation ISREW Intelligence, Surveillance,

Reconnaissance and Electronic Warfare

ISREWCS ISREW Cyber Space ITR Invitation to Register Interest IV&V Independent Verification and

Validation JCA Joint Capability Authority JCF Joint Concepts Framework JCG Joint Capability Group

JCN Joint Capability Narrative JCNS Joint Capability Needs Statement JD Joint Directive JFA Joint Force Authority JICA Joint Integration Concepts and

Assurance JP Joint Program JWC Joint Warfare Council LCC Life Cycle Cost LCCA Life Cycle Cost Analysis LCD Life-cycle Concepts Document LORA Level of Repair Analysis LSA Logistic Support Analysis LSAR Logistics Support Analysis Report MCE Major Capital Equipment MIL-HDBK (U.S.) Military Handbook MIL-STD (U.S.) Military Standard MINCE Minor Capital Equipment MinSub Ministerial Submission MOE Measure of Effectiveness MOP Measure of Performance MOS Measure of Suitability MOTS Military off the Shelf MRD Maintenance Requirements

Determination MSR Mandated System Review MYEFO Mid-Year Economic Fiscal Outlook NCOSE National Council on Systems

Engineering NDI Non-Developmental Item NJF Networked Joint Force NRE Non-Recurring engineering NSC National Security Committee (of

Cabinet) OCD Operational Concept Document ODA Offer Definition Activity OT&E Operational Test and Evaluation OTS Off the Shelf PBL Product Baseline PCA Physical Configuration Audit PDR Preliminary Design Review PES Project Execution Strategy PGPA Public Governance Performance &

Accountability Act 2013 PHS&T Packaging, handling, storage and

transportation PIOC Program Integrating Operational

Concept PLCD Preliminary Life-cycle Concepts

Document PLICIT Professionalism, Loyalty, Integrity,

Courage, Innovation, Teamwork PM Project Management PM&C Prime Minister and Cabinet

(Department) PMBOK Project Management Body of

Knowledge PMI Project Management Institute PMP Project Management Plan PMSG Project Management Stakeholder

Group PO Project Office

PRICIE Personnel, research and development, infrastructure, concepts and doctrine, information technology, equipment

PRR Project Risk Register PS Program Strategy PWBS Program/Project Work Breakdown

Structure PWD Planned Withdrawal Date QA Quality Assurance RAAF Royal Australian Air Force RAM Reliability, Availability, Maintainability RAN Royal Australian Navy RBS Requirements Breakdown Structure RFI Request for Information RFP Request for Proposal RFT Request for Tender RI Repairable Items RMP Risk Management Plan S&Q Survey and Quote SA Support Analysis SAA System Acceptance Audit SBS System Breakdown Structure SCRAM Schedule Compliance Risk

Assessment Methodology SDD System Design Document SDR System Design (Definition) Review SE Systems Engineering SEBoK Systems Engineering Body of

Knowledge SEDS Systems Engineering Detailed

Schedule SEI Software Engineering Institute SEMP Systems Engineering Management

Plan SEMS Systems Engineering Master

Schedule SLOC Source Lines Of Code SME Small-to-Medium Enterprise SME Subject Matter Expert SNR Stakeholder Needs and

Requirements SOI System of Interest SOP Standard Operating Procedure(s) SoS System of Systems SoSE SoS Engineering SOW Statement of Work SP&I Strategic Policy & Intelligence

(Group) SPPR Spares Provisioning Preparedness

Review SRD Stakeholder Requirement Document SRR Systems Requirements Review SS (Mission) System Specification SSCC Support System Constituent

Capabilities SSDDR Support System Detailed Design

Review SSSPEC Support System Specification STD Standard StRS Stakeholder Requirements

Specification SW Software

SWEBOK Software Engineering Body of Knowledge

SyRS System Requirements Specification T&E Test and Evaluation TARR Task Analysis Requirements Review TCD Test Concept Document TCO Total Cost of Ownership TDRL Tender Data Requirement List TEMP Test and Evaluation Master Plan TEPPR Training Equipment Provisioning

Preparedness Review TIRA Technical Implementation Risk

Assessment TLS Through Life Support TNGRR Training Readiness Review TPM Technical Performance Measures TRAP Technical Review and Audit Plan TRA Technical Risk Assessment TRR Test Readiness Review TXRR Transition Requirements Review URD User Requirements Document URS User Requirements Specification V&V Verification and Validation VCDF Vice Chief of the Defence Force VCDFG VCDF Group VCRM Verification Cross Reference Matrix VFM Value for Money WBS Work Breakdown Structure WHS Workplace Health and Safety WHS Workplace Health and Safety Act

2013 WSOI Wider SOI

Introduction to Defence Project Management

Dr Shari Soutberg & Professor Mike Ryan

©2020 ‐ 1 ‐ 28 April 2020


Dr Shari Soutberg

Professor Mike Ryan

1

Course Outline3

Module 11. Project Management principles:

• Overview of PM frameworks: MSP, PRINCE2, AS 21000, ISO 55000, PMBOK

• Project basics

• PMBOK process groups and knowledge areas (KAs)

2. Defence policy and approach to PM:

• Overview of CLC: phases and frameworks

• Project Management in the CLC:

o Programs, Projects, Products

o Role of IPMs and IPTs

o PM as it relates to FIC

Module 23. How PM principles (with focus on PMBOK) are applied in Defence:

• Defence PM implementation based on PMBOK Knowledge Areas (KAs)

• Developing key CLC PM documents: PES, IPMP

4. Key supporting PM activities in Defence:

• Resourcing a Project

• Work Breakdown Structures (WBSs)

• Project Controls including:

o cost estimation

o schedule construction

• Work/project take‐on activities



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Learning OutcomesBy the end of this course, the participants will be able to: ‐

• Understand and be able to describe general project management principles including:

– project lifecycle, attributes and constraints;

– key objectives of project management; and

– recognised project management frameworks relevant to Defence.

• Be able to broadly describe the application of project management in Defence including:

– CLC project management roles and the place of projects in the Defence Capability Program Architecture (CAP);

– the meaning of integrated project management in Defence; and

– when and how project management is applied across the Defence Capability Lifecyle (CLC).

• Understand the PMBOK structure and how it can be used to guide Defence project management and develop key Defence CLC project documents

• Understand and be able to describe how key activities support project management in Defence:

– Work Breakdown Structures

– Schedule construction and management

– Cost estimation

– Resourcing

– Project Office planning

– Reporting

4

Approach to the Course

Module 1

1. Overview of Project Management ‐ based on PMBOK.

2. Overview of CLC ‐ with emphasis on Project Management.

Module 2

3. Work through the PMBOK Planning process:

• because it covers all elements of Project Management.

• show CASG processes, documents etc as part of this.

– All CASG elements are shown in ORANGE print or depicted as orange graphics.

NOTE: We have left in some extra reference slides but will skip over them during the course.

5

IPMP



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Module 1

1. Project Management Principles

6

Course Outline7



• Project basics















o cost estimation





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Introduction

• Project management is still a relatively young, emerging profession.

• While there is some considerable agreement to the tasks that should be conducted, many of the terms are still not standardised.

• We will highlight the major practices and use the most commonly accepted terms.

• In particular, we discuss project management within the framework adopted in the Project Management Body of Knowledge (PMBOK©)*.

8

* A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Project Management Institute, Upper Darby, PA, 2017.

Overview of Guidance for Project Management



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Project Management Bodies of Knowledge 10

PMI‐ Program Management P3M3

MSP

BS6079

APM BOK

PRINCE2

P2MAFNOR Stds

PMI – Project Portfolio Management

PMI ‐ Unified Project Management Lexicon

OPM3

ANSI/PMI 99‐001‐2004

DIN ‐ Project Management Standard

PMBOK

Source: Towards an International Standard for Project Management ISO‐21500 Guide to Project Management, Standards Australia

Different Approaches to Project Management 11

• Several different frameworks and methodologies.

• Sometimes confusing to know what to use.

• Defence has its own tailored approach to Project and Program Management.

• CASG Project Management system aligns with and draws on the language and practice of:

– Managing Successful Programmes (MSP®);

– PRINCE2®;

– PMBOK®;

– AS ISO 55000‐55002:2014; and

– AS ISO 21500:2016 Guidance on Project Management.



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Projects in Context: Portfolio, Programs and Projects

• Increasingly Project Management practice recognises that Projects are undertaken within a broader management structure based on management ‘layers’:

– Portfolio.

– Program.

– Project.

• Defence has adapted this structure (which we will discuss later).

12

Generic View: Portfolio, Programs, Projects

• Portfolio:

– total set of an organization’s programs and standalone projects.

– reflects scope of organisation’s strategic outcomes.

• Program:

– comprises a group of related projects and activities.

– delivers outcomes and benefits of strategic relevance.

– temporary flexible ‘sub‐organisation’.

– coordinates, directs and oversees implementation.

– duration can be several to many years.

• Project:

– shorter duration than Programs.

– specific deliverables within agreed cost, time and quality.

– has relationships with other Program, Projects & activities

13

Guidelines for Managing Programmes: Understanding programmes and programme management, Dept for Business Innovation and Skills, UK Government



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Generic View: Portfolio, Programs, Projects 14

Portfolio

Program A Program B

Project B2

Project B1

Project B3

Program C Program D Program E

Project E1

Project E2

Project E3

Activity E4

Program F

Portfolio

Programs

Projects

(and Activities)

• Methodology for managing Programmes (Programs).

• Sponsored by UK Office of Government Commerce (OGC) based on best practice in public and private sectors.

• Focus on benefits and improvements to corporate outcomes.

• Programme delivers more than the 'sum of its parts’.

• Co‐ordination and/or integration of Projects.

• Comprises:

– Principles,

– Governance Themes, and

– Transformational Flow Processes

Managing Successful Programmes (MSP)15



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How MSP Impacts Defence PM

• ‘Umbrella’ Program or holistic view of constituent Project objectives, results, and actions.

• Ensures:

– Common goals for related Projects;

– Governance across related Projects;

– Structured management of the group of Projects; and

– Coordinated and integrated Projects actions and outcomes.

16

• Also sponsored by OGC ‐ defacto standard in UK.

• Originally developed for IT projects.

• Defines 7 Process Groups with subordinate sub‐processes:

1. Starting up a Project (SU).

2. Initiating a Project (IP).

3. Directing a Project (DP).

4. Controlling a Stage (CS).

5. Managing Product Delivery (MP).

6. Managing Stage Boundaries (SB).

7. Closing a Project (CP).

PRojects IN Controlled Environments (PRINCE2) 17

https://prince2.wiki/extras/prince2‐process‐model/



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PRojects IN Controlled Environments (PRINCE2) 18

Directing a Project (DP)

Startup(SU)

Initiating a Project (IP) Controlling a Stage (CS)

Managing a Stage Boundary

(SB)

Closing a Project(CP)

Managing Product Delivery (MP)

Process Groups and Sub‐processes used at different ‘stages’ of the Project lifecycle.

Pre-Project Initiation Stage Subsequent

Delivery stage (s) Final Delivery Stage

Managing a Stage Boundary

(SB)

Controlling a Stage (CS)

Managing Product Delivery (MP)

Directing

Managing

Delivering

https://prince2.wiki/extras/prince2‐process‐model/

How PRINCE2 Impacts Defence PM

• Process based: defines management activities.

• Can see the boundary management between phases of the Defence CLC: e.g. Stage Boundary (SB) process.

• Focus on business justification.

• Emphasis on defined organisational structure.

• Product‐based planning: Managing a Product Delivery (MP) process.

• Focus on establishing a Project, for example:

– Project Start‐up process (SU).

– Initiating a Project process (IP).

• Flexible application.

19



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• International standard covering management of assets of any kind.

• CASG applies the four core principles across the asset lifecycle to deliver capability outcomes:

– Value: capability performance, risk, opportunity and TCO.

– Alignment: integrated system to meet organizational objectives.

– Leadership: clear roles, responsibilities, and accountability.

– Compliance and assurance: confirmation that assets and management system will deliver capability.

Asset Management: AS ISO 55000‐55002:201420

• Defence capability from a whole of lifecycle perspective.

• PM is an integrating discipline across the asset lifecycle.

• Promotes use of a suitable standard methodology (e.g. PMBOK) tailored to the organization.

• CASG PM Manual (PMM) is aligned to AS ISO 55002:2014 recommended document structure.

How Asset Management Impacts Defence PM21

PlanningAcquisition/ Construction

Operation (use) and Sustainment

Retirement/Disposal

Task 1Task 2Task 3



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AS ISO 21500:2016 Guidance on Project Management

• International standard providing generic guidance, core principles and what constitutes good practice in PM.

• Situates Project in relation to Program and Portfolio.

• Address the multitude of PM Bodies of Knowledge:

– a set of universally acceptable PM Principles; and

– helps align: Terminology, Processes, Informative Guidance.

22

How AS ISO 21500 Impacts Defence PM

• More efficient tendering through consistent terminology.

• Multi‐national organizations can coordinate PM processes and systems.

• Help mobility of PM personnel across the world.

• Framework to map certification programs and reciprocity.

• Framework for generic PM principles and processes for advancement of the PM profession.

23



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Different Approaches to Project Management 24

So…

• Different PM frameworks and methodologies.

• To some extent these are all reflected in Defence PM.

• Can assist as checklist of things to consider and manage.

• We will focus on PMBOK as it is used for accreditation of most Defence Project Managers through the professional bodies: PMI and AIPM.

Course Outline25



• Project basics















o cost estimation





©2020 ‐ 13 ‐ 28 April 2020

Project Basics

What is a Project?

• Normally within an organisation there are the people who conduct the normal operations of an organisation (the tellers in bank, for example) and those that perform projectsundertaken to improve the organisation and its services (the project managers who roll out the new ATM network, for example).

• While the distinction between the two is occasionally blurred, operations tend to be ongoing and repetitive, while a project is:

a temporary endeavour undertaken to create a unique product, service or result.*

27




©2020 ‐ 14 ‐ 28 April 2020

What is a Project?

• Temporary:

– A project has an identifiable start and end date.

– Temporary relates to the activity, not the product.

– Temporary does not indicate any particular duration—some projects are very short (of the matter of days), others can take decades.

• Unique:

– The unique nature of a project arises because there is always something different about the activities undertaken during a project.

– For example, building a new house is unique because of different owners, block of land, design, timeframe, etc.

28

Project Size

• A project therefore applies to a wide range of activities undertaken by an organisation over and above its normal operational activities.

• Notice that nothing we have said refers to the size of a project—a project may only involve a few people and a small number of resources, or thousands of people and billions of dollars.

• A project can be of any size—from baking a cake to building the Channel Tunnel—whatever the size, the principles we discuss here are applicable.

• We do need, however, to consider the size of a project (and therefore the amount of management required) at the beginning when we are establishing project processes and procedures.

29



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What is a Project?

• A project is distinctive because it has:

– A distinct start and finish.

– A life cycle ( a number of distinct phases between the start and end).

– A budget and an associated cash flow.

– Unique activities.

– Use of resources.

– A single point of responsibility (the project manager).

– Team roles.

* R. Burke, Project Management: Planning and Control Techniques, Burke Publishing, 2003.

30

What is a Project?

• Typical projects may be:

– Developing a new product or service.

– Changing the organisational structure, staffing levels or culture.

– Introducing a new operating procedure into an organisation.

– Designing a new city.

– Modifying an engine to provide greater power.

– Constructing a building or a complex.

– Drilling a well in a third‐world village.

– Running for local office.

• In short, a project may be any unique, temporary endeavour.

31



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What is Project Management?

• Project Management provides a structured and reliable means to realise the Product.

• Project management is:

the application of knowledge, skills, tools and techniques to project activities to meet project requirements.*

• Project management is the management effort to deliver the best balance across these requirements.

32


What is Project Management?

• Project management is:

the application of knowledge, skills, tools and techniques to project activities to meet the project requirements.*

• Note: “meet”, not “meet or exceed”.

• We achieve project management through a number of well‐defined processes (the ten PMBOK knowledge areas*) that we discuss in more detail throughout this course.

• They are introduced here to provide an overview of project management.


33



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What is Project Management?34

SCOPE

CUSTOMERSATISFACTION

TIME COST

Why is a Project Management Method Needed?

• To prevent Project failure: ensure that all necessary aspects of a project are clearly defined and deliberately managed.

• The method should cover:

– Definition of outcomes and a plan to get there:

• who;

• when; and

• how.

– Organisational structures including roles and responsibilities.

– Progress monitoring of cost, schedule and quality.

– Actions to identify and fix problems (risks and issues).

35



©2020 ‐ 18 ‐ 28 April 2020

Every Project should manage these elements36

What?Define and agree the expected outcome.

When? Agree when it is required.

How?

How much?

Figure out and agree how it will be done.

Calculate and agree the cost.

Do it.Execute: check, control and assure

$

Task 1

Task 2

Task 3

Who? Who will do what.

• Cost Estimation • Budgeting

• Needs & Requirements• Scope• Stakeholders (to agree)

… and we will introduce associated PM activities & terms

37

What?

When?

How?

How much?

Do it.

$

Task 1

Task 2

Task 3

Who?

• Schedule

• WBS• Resources• Plans• Integration

• Quality • Reporting

• Stakeholders

Define and agree the expected outcome.

Agree when it is required.



Execute: check, control and assure

Who will do what.



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Who is the Project Manager?

• The project manager is the single point of responsibility for a project.

• The project manager integrates and coordinates all the contributions of the project team and guides them successfully to completion.

• Project managers need good:

– General management and administration skills.

– Leadership skills.

– Planning, problem‐solving and decision‐making ability.

– Communications (written and verbal) skills.

– Negotiation skills.

– Technical skills.

38

Program and Portfolio Management

• A program is defined as a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

• A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.

39




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Project Life Cycle

• Because each project is unique we must be careful to manage it since there is always at least some part of the project that we have never done before.

• To assist in managing projects we normally break the activities up into a number of phases.

• Phases are important because:

– They allow for finer control and management.

– Projects are easier to describe and communicate.

– Decision points at the end of phases allow us the opportunity to review progress and make decisions about future work.

– Phases of activity can be associated with broader organisational financing and scheduling arrangements.

40

Project Life Cycle

• Phases normally end with some form of deliverable.

• In some respects, then, we can consider a phase as a mini‐project that has resources, a beginning and an end, and so on—we can therefore manage it properly.

• The set of all phases is called the project life cycle.

• There are a number of project life‐cycle models adopted by different organisations. While they are largely very similar, they have slightly different phases, end points, reviews, and so on, depending on the unique needs of the industry and the organisation.

• All project life cycles have a number of common elements.

41



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Typical Project Life Cycle42

Conceive Develop Implement Terminate

Gather dataIdentify needEstablish:

Goals, objectivesBasic economicsFeasibilityStakeholdersRisk levelStrategyTeam

Estimate resourcesIdentify alternativesPresent proposalGain approval

Appoint teamConduct studiesDevelop scopeEstablish:

Master planBudgetCash flowWBSPolicesProcedures

Assess risksConfirm justificationPresent brief

Set up organisationSet up communicationsMotivate teamDetail technical requirementsEstablish

Work packagesDetailed scheduleInformation control systems

Procure goods and servicesExecute work packagesDirect/monitor/forecast/control:

ScopeQualityTimeCost

Resolve problems

Finalise productsReview and acceptTransfer responsibilityEvaluate productDocument resultsRelease/redirect resourcesReassign project team

Simple Project Life-cycle Phases

Typical Project Life Cycle43

Implementation

Leve

l of E

ffort

Time



©2020 ‐ 22 ‐ 28 April 2020

Project Life Cycle

• Resource usage. At the start, the levels of staffing, finance and other resources are relatively low. As the project progresses, the utilisation increases and then diminishes rapidly as the product is completed and delivered.

44

Initial Phase Final PhaseIntermediate Phases

Start FinishTime

Res

ou

rce

Lev

els

Rate of effort

Accumulative effort

Project Life Cycle45

fast

fast

slow

slowslow

slow

Time

100%

0%

Per

cent

age

Com

plet

e

A

B

0



©2020 ‐ 23 ‐ 28 April 2020

System Acquisition Project

Use of the Word ‘System’

• The word ‘system’ has many contexts:

– Physical systems such as solar systems, river systems, railway systems, satellite systems, communication systems, information systems, pulley systems, and nervous systems.

– Philosophical systems, social systems, religious systems, gambling systems, banking systems, and systems of government.

– More‐esoteric examples, such as the consideration of individual and social behaviour as a system of purposeful events.

47



©2020 ‐ 24 ‐ 28 April 2020

Use of the Word ‘System’

• The common aspect of ‘system’ stems from its early use to refer to:

the whole (or the set) that results:

when a number of things have been grouped,

in a particular manner,

for a particular reason.

• So, what is a ‘system’ in the context of ‘systems engineering’?

48

Definition of a System

• In systems engineering, ISO/IEC 15288 therefore defines a system as:

a combination of interacting elements organized to achieve one or more stated purposes*

* ISO/IEC 15288‐2015, Systems and Software Engineering—System Life Cycle Processes, 2015.

49



©2020 ‐ 25 ‐ 28 April 2020

Types of Systems

• There are four main classifications of system:

– Closed/open systems.

– Natural/human‐made/human‐modified systems.

– Physical/conceptual systems.

– Precedented/unprecedented systems.

• A wide variety of combinations of the characteristics can lead to a large number of types of systems, each of which has markedly difficult properties.

• Systems engineering is applied to open, physical systems that are human‐made/modified from largely precedentedelements.

50


• So, a system comprises:

– system elements,

– interconnections (interactions) between elements, and

– an external system boundary.

System of interest(SOI)

System element

Interconnection/interaction

System boundary

51



©2020 ‐ 26 ‐ 28 April 2020


• Narrowing the definition of a system has two major implications:

– The systems elements, interconnections and boundary are not accidental but result from deliberate design (engineering).

– A system must be managerially and operationally independent (and may well have been procured independently).

52

System Life Cycle

• Throughout the life of a system there are a number of phases and activities, each of which builds on the results of the preceding phase or activity.

• The sum all these activities is called a system life cycle.

• A generic system life cycle can be divided into four very broad phases.

53

AcquisitionPhase

UtilizationPhase

RetirementPhase

Pre-acquisitionPhase



©2020 ‐ 27 ‐ 28 April 2020

Asset Management Lifecycle

Asset, System & Project lifecycles are related…54



Retirement/Disposal

AcquisitionPhase

UtilizationPhase

RetirementPhase



System Lifecycle

Project Lifecycle

ImplementationPlanning Analysis Design Maintenance Disposal

System DevelopmentOR

Lifecycles are used and tailored as appropriate…55

AcquisitionPhase

UtilizationPhase

RetirementPhase



System Lifecycle

Project Lifecycle

• We will use the following…



©2020 ‐ 28 ‐ 28 April 2020

The System Lifecycle Reflects SE activities

• Systems engineering is predominantly related to the Acquisition Phase of the system life cycle and, to a lesser extent, the Utilization Phase.

• For these two major phases, we use the life‐cycle activities based on those defined by Blanchard and Fabrycky.

56

AcquisitionPhase

PreliminaryDesign

DetailedDesign and

Development

UtilizationPhase

RetirementPhase


ConceptualDesign

Constructionand/or

Production

Operational Useand

System Support

Blanchard, B. and W. Fabrycky, Systems Engineering and Analysis, Upper Saddle River, N.J.: Prentice-Hall, 1998.

Systems Engineering (SE) activities

• We address SE as it relates to the Project lifecycle and all relevant effort—that is, Conceptual Design to Operational Use.

Connecting Systems Engineering to a Project 57

AcquisitionPhase

UtilizationPhase

RetirementPhase



System Lifecycle

Project Lifecycle

PreliminaryDesign

DetailedDesign and

Development

ConceptualDesign

Constructionand/or

Production

Operational Useand

System Support

Systems Engineering (SE) activities



©2020 ‐ 29 ‐ 28 April 2020

Acquisition Project Therefore Reflects SE Actions58

NEED

DISPOSAL

PreliminaryDesign

DetailedDesign and

Development

Operational Useand

System Support

Constructionand/or

Production

ACQUISITIONPHASE

UTILISATIONPHASE

ConceptualDesign

NEED

DISPOSAL

PreliminaryDesign

DetailedDesign and

Development

Operational Useand

System Support

Constructionand/or

Production

ACQUISITIONPHASE

UTILISATIONPHASE

ConceptualDesign

System Acquisition Project System Use

59Project Managementand

Systems Engineering

PM

BO

KK

no

wle

dg

e A

rea

IEE

E 1

220

EIA

/IS 6

32

AN

SI/

EIA

63

2IS

O/I

EC

152

88

Integration Management

Scope Management

Time Management

Cost Management

Quality Management

Resource Management

Communications Management

Risk Management

Procurement Management

Stakeholder Management

SEStandard



©2020 ‐ 30 ‐ 28 April 2020

Why the PM/SE Relationship Matters60

Systems Engineering approach

System Development/ Engineering approach:• Waterfall• Incremental• Evolutionary• Incremental Commitment Spiral Method (ICSM)

Acquisition Project elements and features

drives

Sequence and extent of activities: • Requirements development• Design and Development;• Prototyping; • Manufacturing and Production*• Demonstration and Deployment.

* e.g. LRIP (numbers and off‐ramps) and full production

Because…

System Development: Traditional

‘Traditional’:

• Waterfall:

– known requirements.

– sequential design, development, production.

• Incremental:

– known requirements.

– development in stages/increments.

• Evolutionary/Original Spiral Model:

– progressive definition of requirements.

– define a bit; design a bit; build a bit; test a bit; repeat.



©2020 ‐ 31 ‐ 28 April 2020

Typical Project Life Cycles62

Software Development—Waterfall Model

REQTSANALYSIS

SYSTEMDESIGN

PROGRAMDESIGN

CODING

TESTING(Unit, Integration

System, Acceptance)

OPERATION& MAINT

Incremental Development63

Increment 1 Increment 2 Increment n

Final system scope

Kernel

Increment 1 scope

Increment 1 Increment 2 Increment n

Kernel Kernel

ReqSet



©2020 ‐ 32 ‐ 28 April 2020

Evolutionary Development64

Build 1 Build 2 Build n

Final system scope

Build 1 Build 2 Build n

Build 1 scope

InitialReqs

FurtherReqs

FurtherReqs

Overlapping Incremental Builds65

Build 2

Build n

Time

RBL1 RBL2 RBLn

Build 1

Build nfielded

Build 2fielded

Build 1fielded

ReqSet



©2020 ‐ 33 ‐ 28 April 2020

Overlapping Evolutionary Builds66

Spiral Development67

Cumulative cost

Evaluate alternativesidentify, resolve risks

Determine objectives,alternatives, constraints

Develop andverify next-level product

Plan next phases

RiskanalysisRisk

analysisRiskanalysis

Riskanalysis

Prototype1

Prototype2

Prototype3

Operationalprototype

Simulations, models, benchmarks

Concept ofoperation Sof tware

requirements Sof tware productdesign

Detaileddesign

Requirementsvalidation

Design validationand verif ication

Implementation Acceptancetest

Integrationand test

Unittest

Code

Developmentplan

Integrationand test plan

Requirements planLife-cycle plan

Review



©2020 ‐ 34 ‐ 28 April 2020

System Development Method: Risk‐driven

‘Risk‐focus’:

• Incremental Commitment Spiral Model (ICSM) adds (to the original Spiral Model):

– Risk‐based decision points or ‘nodes’: these are stakeholder commitment review points.

– Risks:

• Identified, assessed, mitigation plans defined.

• Basis for deciding next steps.

– Proceed, skip, backtrack or terminate.

– Suitable for complex, rapid pace of change in technology, significant integration

– Concurrent activities “The Incremental Commitment Spiral Model (ICSM)”, Boehm B., et al The Incremental Commitment Spiral Model: Principles and Practices for Successful Systems and Software, 2014, Pearson Education

ICSM Application

• Systems of Systems.

• Families of Systems or product line.

• Complex Hardware‐Intensive, Software Intensive Systems.

• ‘Agile’ based projects.

• COTS/MOTS integration.

• Legacy‐Intensive ‘Brownfield’ Systems e.g. modernisation.

• Hardware or software.

“The Incremental Commitment Spiral Model (ICSM)”, Boehm B., et al The Incremental Commitment Spiral Model: Principles and Practices for Successful Systems and Software, 2014, Pearson Education



©2020 ‐ 35 ‐ 28 April 2020

Agile Development

• Encompasses a number of development methodologies.

• Development work broken into small increments that are iterations, or sprints, typically from one to four weeks long.

• Aims to minimise overall risk and allows the product to adapt to changes.

• An iteration ends with a ‘working’ product, although multiple iterations will normally be required before release.

• Efficient face‐to‐face communication facilitated by co‐location of team members to reduce development cycle time.

• Development teams include a representative of the customer.

• Each iteration ends with stakeholders and the customer representative reviewing progress and re‐evaluating priorities.

Other Project Life Cycles71

Representative Life Cycle of a Pharmaceuticals Project

A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Project Management Institute, Upper Darby, PA, 2017.

Drug Sourcing

ScreeningLeadIdentified

PreclinicalINDWorkup

FileIND

Patent Process

Discovery ScreeningPreclinicalDevelopment

Ten Plus Years

Registration Workup Post-submission Activity

Phase IClinicalTests

Phase IIClinicalTests

Phase IIIClinicalTests

Formulation Stability

Process Development

FileNDA Post-registration Activity

APPROVAL

Toxicology

Metabolism



©2020 ‐ 36 ‐ 28 April 2020

Summary of Project and System Lifecycles

To define the System Acquisition Project it is important to understand the Systems Engineering approach and the SE lifecycle that is appropriate to your circumstances.

Systems Engineering approach

Acquisition Project elements and features

drives

Finally…the importance of requirements73



How?

How much?



Do it.Execute: check, control

and assure

$

Task 1

Task 2

Task 3




©2020 ‐ 37 ‐ 28 April 2020

The Importance of Project Definition: Requirements74

65%

5% 10%

25% 10%

85%

% of Potential Cost or Efficiency Gains Achieved or Lost

% of Total Project Cost for Typical Project

Requirements Identification, Strategy Development, and Initial Risk Assessment

Build and Introduction Into Service

The Importance of Project Definition: Requirements75

High

Low

Impact of problem definition(ease of making changes)

Resource levels(cost of making changes)

Time



©2020 ‐ 38 ‐ 28 April 2020

Course Outline76



• Project basics















o cost estimation



PMBOK



©2020 ‐ 39 ‐ 28 April 2020

Previously we saw a very high level of PM… 78

What?

When?

How?

How much?

Do it.

$

Task 1

Task 2

Task 3

Who?






Who will do what.



…and we introduced associated PM activities & terms79

What?

When?

How?

How much?

Do it.

$

Task 1

Task 2

Task 3

Who?

• Schedule



• Stakeholders






Who will do what.



©2020 ‐ 40 ‐ 28 April 2020

Project Management Body of Knowledge (PMBOK)

• Provides a structured approach to addressing all of these elements of PM.

• Ensures that all aspects of a project are covered.

PMBOK Structure

• Summarised in a table of Project Management activities.

• Structured into Process Groups and Knowledge Areas.



©2020 ‐ 41 ‐ 28 April 2020

PMBOK details what to do across the Project Lifecycle

Conceive Develop Implement Terminate Project Lifecycle

PMBOK Structure Knowledge

AreasProject Management Process Groups

Initiating Planning Executing Monitoring & Controlling Closing


Develop Project Charter

• Develop Project Management Plan • Direct and Manage Project Work

• Manage Project Knowledge

• Monitor and Control Project Work

• Perform Integrated Change control

• Close Project or Phase

Scope Management

• Plan Scope Management• Collect Requirements • Create Scope Statement • Create Work Breakdown Structure (WBS)

• Validate Scope• Control Scope

Schedule Management

• Plan Schedule Management • Define Activities• Sequence Activities• Estimate Activity Durations • Develop Schedule

• Control Schedule

Cost Management • Plan Cost Management • Estimate Costs • Determine Budget

• Control Costs

Quality Management

• Plan Quality Management• Estimate activity resources

• Manage Quality • Control Quality

Resource Management

• Plan Resource Management • Acquire Resources• Develop Team• Manage Team

• Control Resources


• Plan Communications Management • Manages Communications

• Monitor Communications

Risk Management • Plan Risk Management • Identify Risks• Perform Qualitative Risk Analysis • Perform Quantitative Risk Analysis • Plan Risk Responses

• Implement Risk Responses

• Monitor Risks


• Plan Procurement Management • Conduct Procurement • Control Procurements


Identify Stakeholders

• Plan Stakeholder Engagement • Manage Stakeholder Engagement

• Monitor Stakeholder Engagement



©2020 ‐ 42 ‐ 28 April 2020











Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks











Develop Project Charter • Develop Project

Management Plan

• Direct and Manage Project Work





Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks









©2020 ‐ 43 ‐ 28 April 2020

PMBOK Knowledge Areas

• Project Integration Management

• Project Scope Management

• Project Schedule Management

• Project Cost Management

• Project Quality Management

• Project Resource Management

• Project Communications Management

• Project Risk Management

• Project Procurement Management

• Project Stakeholder Management

86

Project Integration Management

• Ensures all project elements are integrated and coordinated and conflicting alternatives and expectations are managed.

• Key is development of the Project Plan.

• Once the plan is in place, the project must be executed in accordance with the plan.

• Since the Project Plan will be subject to changes from time to time and some form of change control is required.

87



©2020 ‐ 44 ‐ 28 April 2020

Project Integration Management88

1.1 Develop Project Charter

.1 Inputs.1 Business documents.2 Agreements.3 Enterprise environmental

considerations.4 Organisational process assets

.2 Tools and Techniques.1 Expert judgement.2 Data gathering.3 Interpersonal and team skills.4 Meetings

.3 Outputs.1 Project charter.2 Assumption log

1.2 Develop Project Management Plan

.1 Inputs.1 Project charter.2 Outputs from other processes.3 Enterprise environmental


.2 Tools and Techniques.1 Expert judgement.2 Data gathering.3 Interpersonal and team skills.4 Meetings

.3 Outputs.1 Project management plan

1.3 Direct and ManageProject Execution

.1 Inputs.1 Project management plan.2 Project documents.3 Approved change requests.4 Enterprise environmental


.2 Tools and Techniques.1 Expert judgement.2 PMIS.3 Meetings

.3 Outputs.1 Deliverables.2 Work performance data.3 Issue log.4 Change requests.5 PMP updates.6 Project documentation updates.7 Organisational process assets

updates

ProjectIntegration Management



1.4 Manage Project Information

.1 Inputs.1 Project management plan.2 Project Documents.3 Deliverables.4 Enterprise environmental


.2 Tools and Techniques.1 Expert judgement.2 Knowledge management.3 Information management.4 Interpersonal and team skills

.3 Outputs.1 Lessons learned register.2 Project management plan updates.3 Organisational process assets

updates



1.5 Monitor and ControlProject Work

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance documentation.4 Agreements.5 Enterprise environmental

factors.6 Organisational process assets

.2 Tools and Techniques.1 Expert judgement.2 Data analysis.3 Decision making.4 Meetings

.3 Outputs.1 Work performance reports .2 Change requests.3 Project management plan updates.4 Project document updates



©2020 ‐ 45 ‐ 28 April 2020


1.6 Perform IntegratedChange Control

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance reports.4 Change requests.5 Enterprise environmental


.2 Tools and Techniques.1 Expert judgement.2 Change control tools.3 Data analysis.4 Decision making.5 Meetings

.3 Outputs.1 Approved change requests.2 Project management plan updates.3 Project document updates

1.7 Close Project or Phase

.1 Inputs.1 Project charter.2 Project management plan.3 Project documents.4 Accepted deliverables.5 Business documents.6 Agreements.7 Procurement documentation.8 Organisational process assets

.2 Tools and Techniques.1 Expert judgement.2 Data analysis.3 Meetings

.3 Outputs.1 Project document updates.2 Final product, service, or result

transition.3 Final report.4 Organisational process assets

updates



Project Scope Management

• Ensures all work necessary to complete the project is included in scope.

• Unnecessary work is omitted.

• Scope planning and definition are an important part of scope management.

• Makes use of well known SE tools such as RBS/WBS.

• As with Integration, once plans have been established, they need to be verified.

• This represents formalised approval of the project and its scope by all stakeholders.

• Changes must be managed following approval.

• Remember:

– Change isn’t necessarily bad but uncontrolled change is.

91



©2020 ‐ 46 ‐ 28 April 2020

Project Scope Management92

2.2 Collect Requirements

.1 Inputs.1 Project charter.2 Project management plan.3 Project documents.4 Business documents.5 Agreements.6 Enterprise environmental factors.7 Organisational process assets

.2 Tools and Techniques.1 Expert judgement.2 Data gathering.3 Data analysis.4 Decision making.5 Data representation.6 Interpersonal and team skills.7 Context diagram.8 Prototypes

.3 Outputs.1 Requirements documentation.2 Requirements traceability matrix

2.3 Define Scope

.1 Inputs.1 Project charter.2 Project management plan.3 Project documents.4 Enterprise environmental factors.5 Organisational process assets

.2 Tools and Techniques.1 Expert judgement.2 Data analysis.3 Decision making.4 Interpersonal and team skills.5 Product analysis

.3 Outputs.1 Project scope statement.2 Project documentation updates

ProjectScope Management


2.1 Plan Scope Management

.1 Inputs.1 Project charter .2 Project management plan.3 Enterprise environmental factors.4 Organisational process assets


.3 Outputs.1 Scope management plan.2 Requirements management plan

Project Scope Management93

2.5 Validate Scope

.1 Inputs.1 Project management plan.2 Project documents.3 Verified deliverables.4 Work performance data

.2 Tools and Techniques.1 Inspection.2 Decision making

.3 Outputs.1 Accepted deliverables.2 Work performance information.3 Change requests .4 Project document updates

2.6 Control Scope

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance data.4 Organisational process assets

.2 Tools and Techniques.1 Data analysis

.3 Outputs.1 Work performance information.2 Change requests.3 Project management plan updates.4 Project document updates

ProjectScope Management


2.4 Create WBS

.1 Inputs.1 Project management plan.2 Project documents.3 Enterprise environmental


.2 Tools and Techniques.1 Expert judgement.2 Decomposition

.3 Outputs.1 Scope baseline.2 Project documentation updates



©2020 ‐ 47 ‐ 28 April 2020

Work Breakdown Structures (WBS)

• A WBS is a deliverable‐oriented grouping of project components that provides a hierarchical description of the whole project—if it isn’t in the WBS, it isn’t in the project’s scope.

• The WBS is therefore a graphical overview of the project that helps verify as well as communicate the project scope.

• The WBS is normally presented in chart form—each item is uniquely identified.

• The lowest level of the WBS contains what are normally called work packages.

94

Work Breakdown Structures (WBS)95

An example WBS—US DoD MIL-HDBK-881 format

Aircraft system

Systems engineering/project management

Air vehicle

Systems test &evaluation

Training

Data

Operationalactivation

Supportequipment

Spares

Facilities

•Undercarriage CI•Wings/fuselage CI•Fuel system CI•Hydraulic system CI•Flight controls CI•Engine CI•Avionics CI•Interior CI•Design, integration, assembly, test

•Developmental test & evaluation•Acceptance test & evaluation•Operational test & evaluation•T&E support•Test facilities

•Aircraft equipment•Support services•Facilities

•Technical publications•Engineering data•Management data•Support data•Data repository

•Test & measurement equipment•Support & handling equipment

•System-level assembly,installation & checkout

•Technical support•Site construction



©2020 ‐ 48 ‐ 28 April 2020

96

.........

.........

.........

.........

............

.........

.........

.........

.........

.........

.........

.........

.........

.........

.........

.........

............

1.1.11.1.1 ..........1.1.2 ..........1.1.3 ..........1.1.4 ..........1.1.5 ..........1.21.2.1 ..........1.2.2 ..........1.2.3 ..........1.31.3.1 ..........1.3.2 ..........1.3.3 ..........1.3.4 .............

Project RBS

CI C

CI D

CI E

CI F

CI n

CI A

CI B

Configuration Items (CI)

Project (Contract) WBS

System Requirements

Project Requirements

EP

3

EP

4

EP

5

EP

6

EP

m

EP

1

EP

2

Enabling Products (EP)

7.7.17.1.1 ..........7.1.2 ..........7.1.3 ..........7.1.4 ..........7.1.5 .............

Sys

tem

Req

uire

men

t Spe

cific

atio

n (S

yRS

)S

tate

men

t of W

ork

(SO

W)

Pro

ject

(C

ontr

act)

Req

uire

men

ts

Work Breakdown Structures (WBS)97

WBS numbering system

COMPLETE PROJECT

1234 01 01 001

Main assemblies

Sub-assemblies

Parts and components

Work package number

R. Burke, Project Management: Planning and Control Techniques, Burke Publishing, 2003.



©2020 ‐ 49 ‐ 28 April 2020

Project Schedule Management

• Includes processes required to ensure the timely completion of the project.

• Also called time management:

– Starts with activity definition where all project activities are identified.

– The sequence that these activities will be conducted is then identified (including parallel).

– The duration of each activity is estimated.

– The schedule results.

• SE is heavily involved with schedule management.

98


• The schedule then needs to be managed and controlled throughout the project.

• Many computer‐aided tools are available to assist (for example, PERT and CPM software).

• Tools don’t manage the schedule, they merely assist the project manager.

• Experience and judgement remain the premier time management tools.

99



©2020 ‐ 50 ‐ 28 April 2020

Project Schedule Management100

3.2 Define Activities

.1 Inputs.1 Project management plan.2 Enterprise environmental factors.3 Organisational process assets

.2 Tools and Techniques.1 Expert judgement.2 Decomposition.3 Rolling wave planning.4 Meetings

.3 Outputs.1 Activity list.2 Activity attributes.3 Milestone list.4 Change requests.5 Project management plan

updates

3.3 Sequence Activities

.1 Inputs.1 Project management plan.2 Project documents.3 Enterprise environmental factors.4 Organisational process assets

.2 Tools and Techniques.1 Precedence diagramming method.2 Dependency determination and

integration.3 Leads and lags.4 PMIS

.3 Outputs.1 Project schedule network

diagrams.2 Project documentation updates

ProjectSchedule Management

A Guide to the Project Management Body of Knowledge (PMBOK), Project Management Institute, Upper Darby, PA, 2017.

3.1 Plan Schedule Management

.1 Inputs.1 Project charter.2 Project management plan.3 Enterprise environmental factors.4 Organisational process assets


.3 Outputs.1 Schedule management plan

Project Schedule Management101

3.4 Estimate Activity Durations


.2 Tools and Techniques.1 Expert judgement.2 Analogous estimating.3 Parametric estimating.4 Three-point estimating.5 Bottom-up estimating.6 Data analysis.7 Decision making.8 Meetings

.3 Outputs.1 Duration estimates.2 Basis of estimates.3 Project document updates

3.5 Develop Schedule

.1 Inputs.1 PMP .2 Project documents.3 Agreements.4 Enterprise environmental factors.5 Organisational process assets

.2 Tools and Techniques.1 Schedule network analysis.2 Critical path method.3 Resource optimization technique.4 Data analysis.5 Leads and lags.6 Schedule compression.7 PMIS.8 Agile release planning

.3 Outputs.1 Schedule baseline.2 Project schedule.3 Schedule data.4 Project calendars.5 Change requests.6/.7 Project plan/document updates

ProjectSchedule Management


3.6 Control Schedule.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance data

.4 Organizational process assets.2 Tools and Techniques

.1 Data analysis

.2 Critical path method

.3 PMIS

.4 Resource optimization

.5 Leads and lags

.6 Schedule compression.3 Outputs

.1 Work performance information

.2 Schedule forecasts

.3 Change requests

.4 Project management plan updates

.5 Project document updates



©2020 ‐ 51 ‐ 28 April 2020

Project Cost Management

• Responsible for ensuring that the project is delivered within the prescribed budget.

• The next step to estimate the costs associated with each of the activities making up the project.

• Can use previous experience, tools, and modelling to assist.

• Cost budgeting involves allocating the budget to individual project activities.

• Cost control then ensures that changes to the cost baseline is positive.

102

Total Cost of Ownership

• Costing approaches: bottom‐up; top‐down; or a combination

• Bottom‐up:

– utilises WBS (based on the requirements set).

• Top‐down:

– exemplar solution (such as cost estimate based on existing similar system/s);

– Parametric (use a known attribute such as weight of ship, SLOC to develop estimates);

– Analytical techniques using historical data and application of factors for projections; and

– Indexing.

103



©2020 ‐ 52 ‐ 28 April 2020

Importance of Good Costing Practice

• Supports consideration of Options for Gate decisions.

• Fundamental part of the Business Case and Government submissions.

• Budgeting.

• Particular aspects have proven to be difficult, such as estimating developmental and/or integration projects.

104

Costing Activities across CLC

• Costing activities and techniques change in type and focus dependent on the phase of the CLC:

– Pre‐Gate 0, 1, 2 activities including risk reduction efforts.

– Acquisition Costs:

• includes Introduction into Service. – Operating Costs:

• Most difficult to estimate.

• Required over LOT of capability.• Techniques include:

–Use of historical data.–Factor against acquisition costs.

– Disposal.

105



©2020 ‐ 53 ‐ 28 April 2020

Project Cost Management106

4.1 Plan cost management.1 Inputs

.1 Project charter


.3 Enterprise environmental factors

.4 Organisational process assets.2 Tools and Techniques

.1 Expert judgement

.2 Data analysis

.3 Meetings.3 Outputs

.1 Cost management plan

ProjectCost Management


4.2 Estimate Costs.1 Inputs





.1 Expert judgement

.2/3 Analogous/parametric estimating

.4 Bottom-up estimating

.5 Three-point estimating

.6 Data analysis

.7 PMIS

.8 Decision making.3 Outputs

.1 Cost estimates

.2 Basis of estimates

.3 Project document updates

Project Cost Management107

4.3 Determine Budget

.1 Inputs.1 Project management plan.2 Project documents.3 Business documents.4 Agreements.5 Enterprise environmental factors.6 Organisational process assets

.2 Tools and Techniques.1 Expert judgement .2 Cost aggregation.3 Data analysis.4 Historical information review.5 Funding limit reconciliation.6 Financing

.3 Outputs.1 Cost baseline.2 Project funding requirements.3 Project document updates

4.4 Control Costs

.1 Inputs.1 Project management plan.2 Project documents.3 Project funding requirements.4 Work performance data.5 Organizational process assets

.2 Tools and Techniques.1 Expert judgement.2 Data analysis.3 To-complete performance index.4 PMIS

.3 Outputs.1 Work performance information.2 Cost forecasts.3 Change requests .4 Project management plan updates.5 Project document updates

ProjectCost Management




©2020 ‐ 54 ‐ 28 April 2020

Project Quality Management

• Aims to ensure that the project will satisfy its needs.

• Quality assurance will be dealt with separately later.

• Project Management has an important role to play with respect to quality management.

• Quality planning requires management to determine which quality standards will be applied to the project—for example, the ISO 9000 series (more on this later).

• Once the quality standards have been selected, quality planning against those standards is required.

• Quality assurance (in accordance with the plan) involves planned and systematic activities aimed at enhancing confidence in project quality.

• Quality control is also used to check specific project results.

108

Project Quality Management109

5.1 Plan Quality Management


.2 Tools and Techniques.1 Expert judgement.2 Data gathering.3 Data analysis.4 Decision making.5 Data representation.6 Test and inspection planning.7 Meetings

3 Outputs.1 Quality management plan.2 Quality metrics.3 Project management plan updates.4 Project documentation updates

5.2 Manage Quality

.1 Inputs.1 Project management plan.2 Project documents.3 Organisational process assets

.2 Tools and Techniques.1 Data gathering.2 Data analysis.3 Decision making.4 Data representation.5 Audits .6 Design for X.7 Problem solving.8 Quality improvement methods

.3 Outputs.1 Quality reports.2 Test and evaluation documents.3 Change requests.4 Project management plan updates.5 Project document updates

5.3 Control Quality

.1 Inputs.1 Project management plan.2 Project documents.3 Approved change requests.4 Deliverables.5 Work performance data.6 Enterprise environmental factors.7 Organizational process assets

.2 Tools and Techniques.1 Data gathering .2 Data analysis.3 Inspection.4 Testing/product evaluations.5 Data representation.6 Meetings

.3 Outputs.1 Quality control measurements.2 Verified deliverables.3 Work performance information.4 Change requests.5 Project management plan updates.6 Project document updates

ProjectQuality Management




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Project Resource Management

• Aims to make the most effective use of resources involved in the project, particularly people.

• Organisational planning is the initial activity involving:

– Identifying requirements.

– Documenting and assigning project roles and responsibilities.

– Reporting relationships.

• Once the resource requirements have been identified, the staff must be acquired.

• Finally, the team must be developed to enhance the performance of the individual and team.

110

Project Resource Management111

6.1 Plan Resource Management


.2 Tools and Techniques.1 Expert judgment.2 Data representation.3 Organizational theory.4 Meetings

.3 Outputs.1 Resource management plan.2 Team charter.3 Project documents updates

6.2 Estimate Activity Resources


.2 Tools and Techniques.1 Expert judgement.2 Bottom-up estimating.3 Analogous estimating.4 Parametric estimating.5 Data analysis.6 PMIS.7 Meetings

.3 Outputs.1 Resource requirements.2 Basis of estimates.3 Resource breakdown structure.4 Project management plan updates

ProjectResource Management

6.3 Acquire Resources


.2 Tools and Techniques.1 Decision making.2 Interpersonal and team skills.3 Pre-assignment.4 Virtual teams

.3 Outputs.1 Physical resource assignments.2 Project team assignments.3 Resource calendars.4 Change requests.5 Project management plan updates.6 Project documents updates.7 Enterprise environmental factors

updates.8 Organisational process assets

updates




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Project Resource Management112

6.4 Develop Team


.2 Tools and Techniques.1 Co-location.2 Virtual teams.3 Communication technology.4 Interpersonal and team skills.5 Recognition and rewards.6 Training.7 Individual and team assessments.8 Meetings

.3 Outputs.1 Team performance assessments.2 Change requests.3 Project management plan updates.4 Project document updates.5 Enterprise environmental factors

updates.6 Organisational process assets

updates

6.5 Manage Team

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance reports.4 Team performance assessments.5 Enterprise environmental factors.6 Organisational process assets

.2 Tools and Techniques.1 Interpersonal and team skills.2 PMIS

.3 Outputs.1 Change requests.2 Project management plan updates.3 Project documents updates.4 Enterprise environmental factors

updates

ProjectResource Management


6.6 Control Resources

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance data.4 Agreements.5 Organizational process assets

.2 Tools and Techniques.1 Data analysis.2 Problem solving.3 Interpersonal and team skills.4 PMIS

.3 Outputs.1 Work performance information.2 Change requests.3 Project management plan updates.4 Project documents updates


• Starts with communications planning to determine the overall communications requirements—who needs what, when and how.

• Information is then disseminated in accordance with the findings of the first step.

• Must be done in a timely manner.

• Reporting the performance and status of the project is an important part of communications.

• An important communications aspect is reporting the closure of project phases or the project itself.

113



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Project Communications Management 114

7.1 Plan Communications Management

.1 Inputs.1 Project charter.2 Project management plan.3 Project documents.4 Enterprise environmental factors.5 Organizational process assets

.2 Tools and Techniques.1 Expert judgement.2 Comms requirements analysis.3 Communications technology.4 Communication models.5 Communication methods.6 Interpersonal and team skills.7 Data representation.8 Meetings

.3 Outputs.1 Comms management plan.2 Project management plan

updates.3 Project documentation updates

7.3 Monitor Communications

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance data.4 Enterprise environmental factors.5 Organisational process assets

.2 Tools and Techniques.1 Expert judgment.2 PIMS.3 Data representation.4 Interpersonal and team skills.3 Meetings

.3 Outputs.1 Work performance information.2 Change requests.3 Project management plan

updates.4 Project documentation updates


ProjectCommunications Management

7.2 Manage Communications

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance reports.4 Enterprise environmental factors.5 Organisational process assets

.2 Tools and Techniques.1 Communications technology.2 Communications models.3 Communications skills.4 PIMS.5 Project reporting.6 Interpersonal and team skills.7 Data representation

.3 Outputs.1 Project communications.2 Project management plan

updates.3 Project documentation updates.4 Organizational process assets

updates

Risk Management

• Risk identification:

– Determine possible risks

– Document risk characteristics

– Needs to be performed on a continual basis

• Risk quantification:

– Evaluates risks and determines interactions

– Determines likely impact of the risk on the project

• Risk response development:

– Take advantage of the opportunities

– Manage the risks to project performance

• Risk response control:

– responding to changes to the risks

115



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Project Risk Management116

8.1 Plan Risk Management

.1 Inputs.1 Project scope.2 Project management plan.3 Project documents.4 Enterprise environmental factors.5 Organisational process assets

.2 Tools and Techniques.1 Expert judgment.2 Data analysis.3 Meetings

.3 Outputs.1 Risk management plan

8.2 Identify Risks

.1 Inputs.1 Project management plan.2 Project documents.3 Agreements.4 Procurement documentation.5 Enterprise environmental factors.6 Organisational process assets

.2 Tools and Techniques.1 Expert judgment.2 Data gathering.3 Data analysis.4 Interpersonal and team skills.5 Prompt lists.6 Meetings

.3 Outputs.1 Risk register.2 Risk reports.3 Project documents updates

8.3 Perform QualitativeRisk Analysis

.1 Inputs.1 Project management plan .2 Project documents.3 Enterprise environmental factors.4 Organisational process assets

.2 Tools and Techniques.1 Expert judgment.2 Data gathering.3 Data analysis.4 Interpersonal and team skills .5 Risk categorisation.6 Data representation.7 Meeting

.3 Outputs.1 Project documents updates

ProjectRisk Management



8.4 Perform Quantitative Risk Analysis

.1 Inputs.1 Project management plan .2 Project documents.3 Enterprise environmental factors.4 Organisational process assets

.2 Tools and Techniques.1 Expert judgment.2 Data gathering.3 Interpersonal and team skills .4 Representation of uncertainty.5 Data analysis

.3 Outputs.1 Project documents updates

8.5 Plan Risk Responses


.2 Tools and Techniques.1 Expert judgment.2 Data gathering.3 Interpersonal and team skills .4 Strategies for threats.5 Strategies for opportunities.6 Contingent response strategies.7 Strategies for overall project risk.8 Data analysis.9 Decision making

.3 Outputs.1 Change requests.2 Project management plan updates.3 Project document updates





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8.7 Monitor Risks

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance data.4 Work performance reports

.2 Tools and Techniques.1 Data analysis.2 Audits.3 Meetings

.3 Outputs.1 Work performance information.2 Change requests .3 Project management plan updates.4 Project documents updates.5 Organisational process assets

updates


8.6 Implement Risk Responses

.1 Inputs.1 Project management plan.2 Project documents.3 Organisational process assets

.2 Tools and Techniques.1 Expert judgement.2 Interpersonal and team skills.3 PMIS

.3 Outputs.1 Change requests .2 Project documents updates


• Responsible for obtaining materials and services for the project from outside the organisation.

• Planning must be conducted to determine what is required and when.

• Solicitation planning—these requirements must be documented and potential sources identified.

• Solicitation involves obtaining quotes and offers etc.

• Source selection determines the best offer.

• Contract administration—put in place to manage the procurement contract with the source.

• Contract close‐out—completion and settlement of the contract.

119



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Project Procurement Management120

9.1 Plan Procurements.1 Inputs

.1 Project charter

.2 Business documents





.1 Expert judgment

.2 Data gathering

.3 Data analysis

.4 Source selection analysis

.5 Meetings.3 Outputs

.1 Procurement management plan

.2 Procurement strategy

.3 Bid documents

.4 Procurement SOW

.5 Source selection criteria

.6 Make-or-buy decisions

.7 Independent cost estimates

.8 Change requests

.9 Project documents updates

.10 Org process assets updates

9.2 Conduct Procurements.1 Inputs



.3 Procurement documents

.4 Seller proposals


.6 Organizational process assets.2 Tools and Techniques

.1 Expert judgement

.2 Advertising

.3 Bidder conferences

.4 Data analysis

.5 Interpersonal and team skills.3 Outputs

.1 Selected sellers

.2 Agreements

.3 Resource calendars

.4 Change requests

.5 Project management plan updates

.6 Project documents updates

.7 Organisational process assets updates

ProjectProcurement Management


9.3 Control Procurements

.1 Inputs.1 Project management plan.2 Project documents.3 Agreements.4 Procurement documentation.5 Approved change requests .6 Work performance data.7 Enterprise environmental factors.8 Organizational process assets

.2 Tools and Techniques.1 Expert judgement.2 Claims administration.3 Data analysis.4 Inspection.5 Audits

.3 Outputs.1 Closed procurements.2 Work performance information.3 Procurement documents updates .4 Change requests .5 Project management plan updates .6 project documents updates.7 Org process assets updates


• The PMBOK says that stakeholder management involves the processes required to:

– identify the people, groups, or organizations (the stakeholders) that could impact or be impacted by the project;

– analyse stakeholder expectations and their impact in the project; and

– develop appropriate stakeholder management strategies.


121



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Project Stakeholder Management 122

10.1 Identify Stakeholders

.1 Inputs.1 Project charter.2 Procurement documents.3 Project management plan.4 Project documents.5 Agreements.6 Enterprise environmental factors.4 Organizational process assets

.2 Tools and Techniques.1 Expert judgment.2 Data gathering.3 Data analysis.4 Data representation.5 Meetings

.3 Outputs.1 Stakeholder register.2 Change requests.3 Project management plan updates.4 Project documents updates

10.2 Plan Stakeholder Engagement

.1 Inputs.1 Project charter.2 Project management plan.3 Project documents.4 Agreements.5 Enterprise environmental factors.6 Organizational process assets

.2 Tools and Techniques.1 Expert judgment.2 Data gathering.3 Data gathering.4 Decision making.5 Data representation.6 Meetings

.3 Outputs.1 Stakeholder engagement plan


ProjectStakeholder Management

Project Stakeholder Management 123

10.3 Manage Stakeholder Engagement

.1 Inputs.1 Project management plan.2 Project documents.3 Enterprise environmental factors.4 Organizational process assets

.2 Tools and Techniques.1 Expert judgement.2 Communications skills.3 Interpersonal and team skills.4 Ground rules.5 Meetings

.3 Outputs.1 Change requests.2 Project management plan updates.3 Project documents updates

10.4 Monitor Stakeholder Engagement

.1 Inputs.1 Project management plan.2 Project documents.3 Work performance data.4 Enterprise environmental factors.5 Organisational process assets

.2 Tools and Techniques.1 Data analysis.2 Decision making .3 Data representation.4 Communications skills.5 Interpersonal and team skills.6 Meetings

.3 Outputs.1 Work performance information.2 Change requests.3 Project management plan updates.4 Project documentation updates

ProjectStakeholder Management




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Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







• We will take you through the PMBOK to show how it can be :

– applied to Defence context; and

– using a simple example (Storage Facility (shed).

• But first we will turn to explain how Defence (CASG) views Project Management in the context of the CLC …

How PMBOK is Used125



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Module 1

2. Project Management and the Defence Capability Life Cycle (CLC)

126

Course Outline127



• Project basics




• Project Management in the CLC incl:











o cost estimation





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What is Defence Capability?

128

First … what is Defence Capability?

• Defence capability:

– capacity or ability of the ADF to achieve a particular operational effect.

• Defence assets:

– called capability systems;

– deliver an operational effect; and

– also have a life cycle.

129



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Key Concept: Capability System ‐ Different Views 130

Support System: SSCC

Mission System

FIC

• Personnel • Organisation• Collective Training• Supplies• Major Systems• Facilities • Support • Command and

Management • Industry • Operating Support

• Engineering Support • Maintenance Support • Supply Support • Training Support

CapabilitySystem

• truck• radar• ship

Materiel System

Key Concept: Capability System ‐ Different Views131

Support System: SSCC

Mission System

FIC

• Personnel • Organisation• Collective Training• Supplies• Major Systems• Facilities • Support • Command and

Management • Industry • Operating Support

• Engineering Support • Maintenance Support • Supply Support • Training Support

CapabilitySystem

• truck• radar• ship

Materiel System



©2020 ‐ 66 ‐ 28 April 2020

Deploy and Operate Force Element

Capability System132

Mission System Support System

Supporting it In‐ServiceEquipment

Key Concept: Mission and Support System Perspective133

Capability System

Mission System Support System

Used to focus on bringing the system into being

(equipment and its use)

What is needed to support it during the In‐service Phase



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Key Term: Fundamental Inputs to Capability (FIC)134

Organisation

Command and Management

SupportFacilities

PersonnelCollective Training

Major Systems

Industry

Supplies

Capability (System)

FIC

Capability System135

Personnel

Collective Training

Facilities and Training Areas

Supplies

Support

Organisation

Command and Management

Industry

Operating Support

Engineering Support

Maintenance Support

Supply Support

Training Support

Mission System

Support System

Effect / Outcome

SSCC

FIC

(Materiel System)

SSCC: Support System Constituent Capabilities



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What is the Objective of the CLC?

136

What is the Objective of the CLC?

• Field (and support) the right defence capability in a timelymanner.

• From a concept to a leading‐edge engineered system used in theatre.

137

https://images.defence.gov.au/assets/archives (M113 Armoured Personnel Carrierhttps://images.defence.gov.au/assets/archives/5003‐All‐Defence‐Imagery/?q=cyber



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Remember the Asset Management Life Cycle? 138



Retirement/Disposal

Asset Management

Task 1Task 2

Task 3

The CLC is the Defence Version for Defence Capability139


Operation (use) and

Sustainment

Retirement/Disposal

Asset Management

Acquisition Strategy and Concepts

Risk Mitigation & Requirements

Setting

In‐Service and

Disposal

What is the Need?

What is the Solution? Acquire Solution Use the Solution (then dispose)

Defence CLC

In plain terms…



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E.g. the Defence Offshore Patrol Vessel (OPV)140


Risk Mitigation and Requirements

Setting

In‐Service and Disposal

What is the Need? What is the Solution? Acquire Solution Use the Solution (then dispose)

1. http://www.ga.gov.au/scientific‐topics/marine/jurisdiction/map‐series2. http://www.navy.gov.au/fleet/ships‐boats‐craft/future/opv3. https://www.sitecraft.net.au/news/defence‐minister‐announces‐commencement‐of‐opv‐construction/4. https://www.theaustralian.com.au/nation/defence/opvs‐will‐give‐fleet‐a‐bigger‐picture/news‐story/6729b38f69823a32866af390e05efcac

Offshore Patrol Vessel (OPV)

Objective of the CLC

Start with the end in mind…

141

AcquisitionStrategy and Concepts

Risk Mitigation and Requirements Setting

In-Service and Disposal

Fielded Capability



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‘Upstream’ Actions Drive Success


142




Success is critically dependent on ‘upstream’ actions and is largely dependent on a well-executed Project

A Good Project is Vital


A well‐established and run Project:

• Significantly reduces risk of failure:

• Capability not ‘Fit For Purpose’ or fielded

– no capability

– waste of taxpayer $

• Cost blowouts

• Schedule overrun

• Minimises waste:

– Allows scarce resources to be used elsewhere

143






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CLC Purpose: Fielded, Supported Capability System

• Capability Systems that are:

– acquired;

– Introduced Into Service (IIS); and

– operated and supported as required.

• The CLC Project is instrumental to all of these outcomes.

144




What is the Structure of the CLC as it Relates to Projects?

145



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Phases and Decision Points

146

Defence CLC is Based on Four Phases of Effort

Four‐phase process based on which:

1. Identifies capability needs.

2. Defines and decides capability solutions.

3. Acquires the capability and introduces it into service.

4. Supports the capability through its life including disposal.

147






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Three decision gates across the ‘Investment Approval Pathway’:

– Gate 0: Defence decision to progress to next Gate.

– Gate 1: Government decision to progress to Gate 2

– Gate 2: Government decision to acquire.

148

Investment Approval Pathway




Gate 0 Gate 1 Gate 2

Major CLC Decision Points: Investment Approval

Major CLC Decision Points: Acceptance into Service

• Fit for purpose: meets operational needs.

• Safe: for use by the operators.

• Satisfy all other obligations: such as environmental compliance.

149




Gate 0 Gate 1 Gate 2 IIS

Introduction into Service (IIS)



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CLC Decision Points and Projects

• Approval or acceptance at each decision point allows the Project to:

– Proceed through Gates 0, 1, and 2; and

– Be viewed as successful (close) i.e. achieve Introduction into Service (IIS).

• A CLC Project is involved in each decision point.

150





Management Layers

151



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CLC Uses Defined Management layers152

Activity: eg preparedness analysis Activity: eg modelling

Program

Portfolio

AcquisitionStrategy and Concepts Risk Mitigation and

Requirements Setting In-Service and

Disposal

Project

Product










Domains

CLC Programs: Optimise Capability and Efficiency 153

“A group of related Projects, Products, and Program

activities that are managed in a coordinated way to optimise

the capability outcome within allocated resources.”

Source: Interim CLC Manual

ProgramAcquisition

Strategy and Concepts














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CLC Programs and Systems154




One system … Main Battle Tank, for example.

Multiple related systems…Combat Vehicles Program eg


ProgramProject 1: System 1

Project 2: System 2

Project 3: System 3

Pre-Project 4:System 4







Acquisition Risk Mitigation and Requirements Setting





CLC Product

• Product:

– Capability system (platform, equipment, commodity).

– Includes all Fundamental Inputs to Capability (FIC).

– Whole of life cycle (concept to disposal).

– Delivers capability effect

– Equivalent to ‘asset’ in Asset Management.

155

AcquisitionStrategy and

Concepts Risk Mitigation and


Disposal

Product life cycle



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CLC Project

• A Project is:

– means by which the Product is delivered;

– encompasses all FIC; and

– considers whole of life of Product.

• Integrated Project Management (IPM) is emphasised for CLC.

156

AcquisitionStrategy and



Disposal

Product life cycle

Project life cycle

CLC Project

• A Project generally occurs in the early part of the Product Life cycle although Projects can be established later (for Product upgrades, for example).

• A Project has its own life cycle which delivers the Product.

157

AcquisitionStrategy and Concepts Risk Mitigation and Requirements Setting


Product life cycle

Gate 0 Gate 2Gate 1

Project life cycle


Con

ceiv

e

Dev

elop

Impl

emen

t

Ter

min

ate

Projectlife cycle



©2020 ‐ 79 ‐ 28 April 2020

CLC Project Management

• Structured and reliable means to deliver a Product.

• CASG Project Management policy and guidance follows the principles from a number of standards namely:

– Project Management Institute (PMI) Project Management Body of Knowledge (PMBOK®);

– AS ISO 55000‐55002:2014;

– Managing Successful Programs (MSP); and

– AS ISO 21500:2016 Guidance on Project Management. AS21000.

158

Integrated Project Management is Core: 3 aspects

Consistent with ISO 55000 and PMBOK*, Project Management is an integrating discipline which ensures:

1. whole‐of‐life, Joint Force Integration are satisfied;

2. coordinated and integrated FIC; and

3. integration of supporting Practices**.

159

* A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Project Management Institute, Upper Darby, PA, 2017.** We will talk about Practices soon.



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Roles and Responsibilities

160

CLC Accountability Model 161

Defence Committee

Investment Committee

Capability Manager

Program Sponsor

Project/Product Sponsor

Government

Delivery Group Head

Program Manager

Integrated Project/Product

Manager

Industry Representative

FIC SMEAcquisition or

Asset Mgt Specialist

Government Submission

SME

Requirements SME

Contestability

IPT

IPT: Integrated Project/Product TeamSME: Subject Matter Expert FIC: Fundamental Input to Capability

Joint Team

Enablers

Delivery Group

Strategy Policy Intelligence

Sponsor

Partnership

Partnership

Source: Interim CLC Manual

Customer Supplier



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Role: Integrated Project Manager (IPM)

• Responsible to plan and deliver the Project:

– whole of life so that capability can be fielded;

– inclusive of all agreed FIC; and

– to specified:

• scope,

• schedule, and

• budget.

• Coordinate delivery and integration of FIC and other enabler elements.

162

Delivery Group Head

Program Manager


Manager

IPM Roles in the CLC

• Delivery Group appoints IPM and establishes IPMT before Gate 0.

• IPM responsible for:

– implementing integrated planning across FIC;

– managing Project (from pre‐Gate 0 to end of acquisition);

– developing key PM documents: such as PES, IPMP, Request documentation;

– coordinating industry involvement;

– integrating and coordinating delivery of FIC;

– leading the Integrated Project Team (IPT); and

– ensuring all disciplines (Practices) needed are applied including when needed.

163



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Integrated Project/ Product Teams

• In both Project and Product cases:

– customer and supplier sides share a partnership; and

– comprise representatives from all relevant stakeholders.

164



Manager





SME

Requirements SME

IPT/ IPdT

Integrated Project/ Product Teams

• IPT: manage Project functions to end of Acquisition Phase.

• IPdT: established before end of Acquisition Phase, as appropriate, to commence Product Management activities.

165

AcquisitionStrategy and Concepts Risk Mitigation and


Disposal

Project life cycle

Product life cycle

Initial IPT established

IPdT established(in this period)

IPT closed

IPdT closed



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IPM Role Regarding FIC

• IPM is responsible for delivery of FIC in two ways:

– Delivers FIC for which lead Delivery Group is responsible.

– Coordinates and integrates all FIC.

• Respective FIC delivery groups accountable for delivering their elements as agreed in plans/agreements (IPMP, PDA).

166

FIC

Materiel (CASG)

ICT (CIOG)

Facilities (E&IG)

Training (CM)

Integrated Project

Organisation

Command &Management

SupportFacilities


Major Systems

Industry

Supplies

Capability

A Range of Practices are involved in any CLC Project 167

Applied throughout the CLC at different levels of intensity and

depth depending on the phase and the nature of the effortAssurance and Risk Management

ILS

Procurement and Contracting

Systems Engineering

Program, Product and Project Management

Practices (‘Toolkit’)

Practices are applied throughout the CLC Process tailored to the CLC Phase and the nature of effort.






©2020 ‐ 84 ‐ 28 April 2020

Practices Conducted at different levels across the CLC168




Product Management Project Management

Systems Engineering


ILS

Assurance and Risk Management

IPM Coordinates their Contribution over the CLC169

Practices are not separate activities rather need to be managed as inter‐related streams of work throughout the CLC.






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IPM Role: Key Project Documents170




IMSIPMP

Product Delivery

Agreement

Key Points

• IPM supports CM to develop Gate 0, 1, 2 submissions

• IPM develops and conducts Project in accordance with documents:

• Approved PES• Approved PDA/ MAA• Approved IPMP including IMS• Contracts• Other approved agreements such as

strategic partnership agreements

Gate 2 Outcomes


PES

Contracts

Other approved agreements

Integrated Project Management Plan (IPMP)

Integrated Master Schedule (IMS)

IPM Role: Coordinate Transition to In‐Service Phase 171




• Transition from Acquisition key milestones:– Initial Operational Capability (IOC).

– Final Operational Capability (FOC).

• Transition to IPdM and IPdMT.• At FOC the Project is closed and IPM, IPT stood down.


IOC/OC (2)

FOCIOC/OC (3)

IOC (1)

Sustainment

Acquisition



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IPM Role: Ensure that ILS Properly Addressed

– design and modification of supportable Mission Systems;

– a sound Support System established and maintained.

172

3.

MissionSystem design

Acquisition Costs

Support System design

Sustainment Costs

1. 2.

Mission system design drives support system requirements

TCO across acquisition and support costs drives Mission System design

Other Key Frameworks

173



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Force Design Framework174

Force DesignFramework(DCAP)




Gate 0 Gate 2Gate 1

Defence Capability Assessment Program (DCAP)

• ‘front‐end’ to the CLC;

• core function of Strategy and Concepts phase; and

• identifies the Capability Need to be delivered through a Project.

• Determines how to best progress the capability need.

• Every Project must undertake SB across CLC.

• SB activities based on workshops with stakeholders.

• Designated IPM is the lead for Smart Buyer efforts.

• Outcome is:

– Project Execution Strategy (PES).

– Basis for Project Plans.

Smart Buyer (SB) Framework and Projects175



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Contestability Framework

• Key assurance function that checks:

– Alignment with Strategic Guidance

– Alignment with Resource Guidance

– Project can be implemented as proposed

• Function performed by Contestability Division

• Projects must engage with Contestability Division

176

Procurement and Contracting Framework

• Major focus for CLC Projects:

• Solicitation between Gates 1 and 2.

• Contract/s establishment (just after Gate 2).

• Contract management for Acquisition and Sustainment.

177





Solicitation &Source Selection

Contract Management

Contract Established

Contracting



©2020 ‐ 89 ‐ 28 April 2020

Procurement Life Cycle is Central to Project Actions

• Planning

1. Plan the procurement.

2. Develop ‘Request documentation’ such as RFT.

• Sourcing

3. Approach the market.

4. Evaluation.

5. Negotiation and contract signature.

• Managing

6. Contract management.

7. Disposal.

178

Planning Sourcing Managing

Relationship to CLC

• CLC Solicitation and Contracting based on the ‘Procurement Life Cycle’.

• Understanding Procurement Life Cycle is pivotal to deciding the best strategy in the PES for a major acquisition.

179







Contracting and Contract Management



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Relationship to CLC

• The Procurement Life Cycle can also be nested within the CLC for example, acquiring risk mitigation studies or other services.

180

Pla

nn

ing

Sou

rcin

g

Ma

na

gin

g

Risk Reduction

activity

Pla

nn

ing

Sou

rcin

g

Ma

na

gin

g

Upgrade activity





Procurement Framework and CLC Projects

• Project role with regard to Procurement:

– CLC Projects are the primary vehicle for CLC capability system (materiel) procurement activities.

– IPMs (and IPTs) are the primary managers and implementers of CLC procurement efforts.

181



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The Two Key ‘Philosophies’ Behind the CLC

182

Key Concept: What Underpins CLC progress?183

Incremental approval or commitment to a capability investment proposal.







©2020 ‐ 92 ‐ 28 April 2020

Key Concept: CLC Decisions to Commit Based on Risk184

• Significantly reduces risk of failure:

– capability not ‘Fit For Purpose’ nor fielded;

– no capability;

– waste of taxpayer $;

– cost blowouts; and

– schedule overrun.

Key Concept: Progressively Reducing the Risk 185




Reducing the risk provides greater certainty and therefore confidence to make decisions …



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Key Concept: Progressively Reducing the Risk 186




Reduced risk enables progressively more significant decisions …

Gate 0Gate 1

Gate 2

IIS

Key Concept: Enabling Appropriate Funding 187




e.g. approve significant funding for acquisition contract

Gate 0Gate 1

Gate 2

IIS

💸 💸 💸

Contract to acquire Capability System



©2020 ‐ 94 ‐ 28 April 2020

Risk / Risk Reduction Drive Time to Fielding Capability 188




Scenario 1:

Scenario 2: higher level of initial risk and moderate rate of risk reduction

Scenario 3:Less initial risk and greater rate of risk reduction


Risk Mitigation and Requirements Setting In‐Service and

Disposal

Acquisition Strategy and Concepts RM&RS


Time to commence acquisition and field capability



time

time

time

CLC Risk Reduction: Projects are Core Implementers189

Risk Reduction Studies(technical and

implementation risks) Further Requirements Definition

RFT + ODIA(commercial risk)

Modelling and Simulation

Eg RFI(commercial risk)

System Reviews

Trade‐off studies

Trade‐off studies




Gate 0 Gate 2Gate 1

Risk Reduction Activities



Preview T&E

Smart Buyer

Threat Analysis, M&S


Transition Implementation

V&V/T&E

Sustainment Implementation and Analysis

Trade‐off studies

Upgrades etc

IIS/AIOS




©2020 ‐ 95 ‐ 28 April 2020

Traceability

190

Defence Enterprise Performance Management191

Source: https://www.defence.gov.au/SPI The Strategy Framework



©2020 ‐ 96 ‐ 28 April 2020

Defence Enterprise Performance Framework 192

Source: https://www.finance.gov.au/

Corporate Plan

Defence Annual Report:Annual Performance

Statement

Plan

How we went X 9/10

Portfolio Budget Statements

Budget $

October Feb/May

September

Hierarchy of Direction and Guidance193

Defence White Paper

Integrated Investment Program (IIP)

Defence Industry Policy Statement

Strategic Guidance

Defence Planning Guidance (DPG), Australia’s Military Strategy (AMS), Annual and Quarterly Strategic Review,

Strategic Policy Statements,

CDF Preparedness Directive, Annual IIP implementation plan, FPR implementation plan, Strategic workforce plan, International Engagement Plan

Government Direction/Policy

Future Operating Environment (FOE), Future Joint Operating Concept (FJOC), Australia’s Joint Operating Concept (AJOC), Plan Aurora

Enterprise–level Plans

Other references e.g Joint Force

e.g. RAN Plan Pelorus, Navy Warfighting Strategy, Plan Mercator, Navy International Engagement Plan

Defence Purpose:• Defend Australia and its

national interests &• Protect Australia and its

national interests

Other references e.g Domain Plans



©2020 ‐ 97 ‐ 28 April 2020

Traceability

• All Project plans and activities are developed and conducted as part of the Defence Enterprise Performance Framework.

• All Project efforts and performance MUST:

– be traceable to higher level direction (including government) :

• Strategic guidance (DWP).

• Resource guidance (IIP).

• Other direction such as procurement policies.

– report progress and benefits against approved direction.

194

Evidence of Traceability Provided Through Artefacts195

DWP

FOE FJOC

AMS

AJOC

What and Why How

PGPA Act

CPRs

Force Design

CPN

JCN

IIP

DIP

DPPM

Raised within Force Design as Program-level direction

PIOCProgram Strategy

PESJCNS

Smart Buyer

OCD

FPS

IPMPProjectWBS

IMS

Tender and Contract Documents

Selected ASDEFCON Suite

DPG

JCFConcepts

Strategic Guidance

Proposal = Sponsor’s Paper+JCNS+PES

Portfolio

Program

Project



©2020 ‐ 98 ‐ 28 April 2020

Artefacts Over the CLC196

Risk Reduction Studies

(technical, commercial risks)

Risk Reduction,

Requirements DefinitionOCD, FPS, TEMP

Solicitation RFT, SER

Requirements Definition

OCD, FPS, TEMP

Planning definition: IPMP, IMS

Contract Mgt Force Design: JCN Contract Mgt





Define Need:JCNS

Smart Buyer Risk

Profile and Strategy definition:

PES

SE Review

Risk Mgt

Assurance Reports

Risk and Assurance Mgt

Contesta‐bility

What and Why

How (and When)

The CLC Process and constituents elements

• Putting this all together…

197



©2020 ‐ 99 ‐ 28 April 2020

CLC Process Overview198

Acquisition Strategy and



Disposal

Gate 0 Gate 2Gate 1

ApprovalsIC

Approval

IC, Government

Approval

IC, Government Approval

CM accepts into service

CM approves disposal

At the highest level CLC Process is punctuated by: • Approvals: internal and external.• Acceptance by ‘User’ (Capability Manager).





Disposal

Gate 0 Gate 2Gate 1

ApprovalsIC

Approval

IC, Government

Approval




Sub

mis

sion

App

rova

l &

Dire

ctio

n

Sub

mis

sion

Sub

mis

sion

App

rova

l &

Dire

ctio

n

App

rova

l &

Dire

ctio

n

Acc

epta

nce

App

rova

l

• Submissions proposed to authorities for ‘approval’ and ‘acceptance’. • Authorities generally provide ‘approval’ and ‘direction’.



©2020 ‐ 100 ‐ 28 April 2020





Disposal

Gate 0 Gate 2Gate 1

ApprovalsIC

Approval

IC, Government

Approval




Contestability

Sub

mis

sion

App

rova

l &

Dire

ctio

n

Sub

mis

sion

Sub

mis

sion

App

rova

l &

Dire

ctio

n

App

rova

l &

Dire

ctio

n

Off

er

Acc

epta

nce

App

rova

l

The submissions or proposals are checked on the way to the authorities e.g. Contestability.





Disposal

Gate 0 Gate 2Gate 1

ApprovalsIC

Approval

IC, Government

Approval




Contestability

Activities

Smart Buyer

CM Needs

Force Design Outputs

Project Activities Project

ActivitiesSmart Buyer

Smart Buyer

Sub

mis

sion

App

rova

l &

Dire

ctio

n

Sub

mis

sion

Project Activities

Sub

mis

sion

Product Activities

App

rova

l &

Dire

ctio

n

App

rova

l &

Dire

ctio

n

Off

er

Acc

epta

nce

App

rova

l

• Many activities are undertaken to:• develop these submissions; • progress the proposal; and• implement all aspects of the investment (including use the

solution).



©2020 ‐ 101 ‐ 28 April 2020





Disposal

Gate 0 Gate 2Gate 1

ApprovalsIC

Approval

IC, Government

Approval




Contestability

Activities

Smart Buyer

CM Needs




Smart Buyer

Sub

mis

sion

App

rova

l &

Dire

ctio

n

Sub

mis

sion

Project Activities

Sub

mis

sion

Product Activities A

ppro

val &

D

irect

ion

App

rova

l &

Dire

ctio

n

Off

er

Acc

epta

nce

App

rova

l

Strategy to acquire and

support agreed

Needs defined

Reduce risky aspects and

specify requirements

Undertake Tendering

Contract for Acquisition and initial support

Manage Project

Deliver Capability System

Support Capability System

DisposeCapability System

The activities support the enable progress through the CLC.





Disposal

Gate 0 Gate 2Gate 1

ApprovalsIC

Approval

IC, Government

Approval




Contestability

Activities

Smart Buyer

CM Needs




Smart Buyer

Artefacts Tender docs

PFPS*

POCD*

PES 1JCNSJCN

FPS*

OCD*PES 2

IPMP

PES 3Reduced Risk

Sub

mis

sion

App

rova

l &

Dire

ctio

n

Sub

mis

sion

Project Activities

IMS

Sub

mis

sion

Product Activities

Contract Docs

IPMP

PDA/MAA

Contract Docs

IPdMP

PDA/MSASource Selection

App

rova

l &

Dire

ctio

n

App

rova

l &

Dire

ctio

n

Off

er

Acc

epta

nce

App

rova

l

Numerous documents/artefacts are developed to provide basis for agreement, understanding and to provide a record.



©2020 ‐ 102 ‐ 28 April 2020





Disposal

Gate 0 Gate 2Gate 1

ApprovalsIC

Approval

IC, Government

Approval




Contestability

Activities

Smart Buyer

CM Needs




Smart Buyer


PFPS*

POCD*

PES 1JCNSJCN

FPS*

OCD*PES 2

IPMP

PES 3Reduced Risk

Sub

mis

sion

App

rova

l &

Dire

ctio

n

Sub

mis

sion

Project Activities

IMSS

ubm

issi

on

Product Activities

Contract Docs

IPMP

PDA/MAA

Contract Docs

IPdMP


Practices/Disciplines

Systems/Requirements Engineering Systems Engineering Management

Project Management


App

rova

l &

Dire

ctio

n

App

rova

l &

Dire

ctio

n

Contract Management

Off

er

Acc

epta

nce

App

rova

l

Practices needed to:• Undertake the capability development activities such as

Systems Engineering, Procurement and Contracting. • Support analysis and decision‐making.• Develop rigorous documents based on best practice.

Key Challenges for CLC Projects

205



©2020 ‐ 103 ‐ 28 April 2020

CASG PM is Pivotal to Most Aspects of CLC 206




Disposal

Gate 0 Gate 2Gate 1

ApprovalsIC

Approval

IC, Government

Approval




Contestability

Activities

Smart Buyer

CM Needs




Smart Buyer


PFPS*

POCD*

PES 1JCNSJCN

FPS*

OCD*PES 2

IPMP

PES 3Reduced Risk

Sub

mis

sion

App

rova

l &

Dire

ctio

n

Sub

mis

sion

Project Activities

IMSS

ubm

issi

on

Product Activities

Contract Docs

IPMP

PDA/MAA

Contract Docs

IPdMP


Practices/Disciplines

Systems/Requirements Engineering Systems Engineering Management

Project Management


App

rova

l &

Dire

ctio

n

App

rova

l &

Dire

ctio

n

Contract Management

Off

er

Acc

epta

nce

App

rova

l

PM: Intersection of Multiple Challenging Factors 207

+Technical endeavour to deliver and

support capability Precision and rigour

Complexity

Engineered systems

Management of Public Resources

Accountability

Performance

Governance/ Legal

+Many Stakeholders



©2020 ‐ 104 ‐ 28 April 2020

Defence CLC Project Management Challenge

PM intersection of multiple challenging factors :

• Stringent Public Sector obligations.

• Complex technical endeavour.

• Commercial complexity.

• Significant stakeholder interaction.

• Scrutiny: tenderers, ANAO, Senate Estimates, media.

208

https://images.defence.gov.au

In Module 2 we will go through each of the PMBOK Knowledge Areas and related CASG activities




Disposal

Gate 0 Gate 2Gate 1



©2020 ‐ 105 ‐ 28 April 2020


Dr Shari Soutberg

Professor Mike Ryan

Course Outline211



• Project basics















o cost estimation





©2020 ‐ 106 ‐ 28 April 2020

Learning OutcomesBy the end of this course, the participants will be able to: ‐

• Understand and be able to describe general project management principles including:

– project lifecycle, attributes and constraints;

– key objectives of project management; and

– recognised project management frameworks relevant to Defence.

• Be able to broadly describe the application of project management in Defence including:

– CLC project management roles and the place of projects in the Defence Capability Program Architecture (CAP);

– the meaning of integrated project management in Defence; and

– when and how project management is applied across the Defence Capability Lifecyle (CLC).

• Understand the PMBOK structure and how it can be used to guide Defence project management and develop key Defence CLC project documents

• Understand and be able to describe how key activities support project management in Defence:

– Work Breakdown Structures

– Schedule construction and management

– Cost estimation

– Resourcing

– Project Office planning

– Reporting

212

Approach to the Course

• Module 1

– Overview of Project Management—based on PMBOK.

– Overview of CLC—with emphasis on Project Management.

• Module 2

– Work through the PMBOK Planning process:

• because it covers all elements of PM; and

• show CASG processes, documents etc as part of this.

–All CASG elements are shown in ORANGE print or depicted as orange graphics.

• NOTE: We have left in some extra reference slides but will skip over them during the course.

213

IPMP



©2020 ‐ 107 ‐ 28 April 2020

Module 2

PMBOK and its Application to Defence Projects

214

Every Project Should Manage these Elements215



How?

How much?



Do it. Execute: check, control and assure

$

Task 1

Task 2

Task 3




©2020 ‐ 108 ‐ 28 April 2020



… we introduced associated PM activities and terms216

What?

When?

How?

How much?

Do it.

$

Task 1

Task 2

Task 3

Who?

• Schedule



• Stakeholders






Who will do what.

We saw that these basic steps and terms are detailed and used in the 10 PMBOK Knowledge

Areas (KAs) and Process Groups …

217



©2020 ‐ 109 ‐ 28 April 2020

PMBOK Actions Repeated over the Project Lifecycle

• The key to Project Management is that the PMBOK actions are undertaken repeatedly over the Project’s lifecycle:

– Repeatedly defining, planning, executing and adjusting.

– Some refer to a rolling wave techniques for planning –more detail as you progress.

218

Project life cycle


PM Effort in Relation to the CLC

In this module we are going to show broadly how you will apply these activities to a CLC Project.

219




Gate 0 Gate 2Gate 1





©2020 ‐ 110 ‐ 28 April 2020

We use a simple example and focus on early stages to show you how to set up a project using PMBOK

220




Gate 0 Gate 2Gate 1



But the same approach can be applied to Defence capability systems (materiel)…

221




Gate 0 Gate 2Gate 1





©2020 ‐ 111 ‐ 28 April 2020

Recall … the PMBOK

• Provides a structured approach to addressing all elements of PM.

• Ensures that all aspects of a project are covered.

222

Subsequent PM Executes and Refines PM Actions Based on PMBOK

223




Gate 0 Gate 2Gate 1





©2020 ‐ 112 ‐ 28 April 2020

PMBOK can be used to define PM activities and develop key CLC documents (PES and IPMP)

224




Gate 0 Gate 2Gate 1

Smart Buyer

CM Needs




Smart Buyer

Tender docs

PFPS*

POCD*

PES 1JCNSJCN

FPS*

OCD*PES 2

IPMP

PES 3Reduced Risk

Project Activities

IMS Contract Docs

IPMP

PDA/MAASource Selection

Preliminary IPMP*

PrelPIPMP

* Preliminary Integrated Project Management Plan (Prel IPMP) is not a formally recognised CLC document but arguably essential as part of the PES development

We will focus on the PMBOK Planning process group because it illustrates all aspects of PM (KAs)

225




Gate 0 Gate 2Gate 1

Smart Buyer

CM Needs




Smart Buyer

Tender docs

PFPS*

POCD*

PES 1JCNSJCN

FPS*

OCD*PES 2

IPMP

PES 3Reduced Risk

Project Activities

IMS Contract Docs

IPMP

PDA/MAASource Selection

Preliminary IPMP*

PrelPIPMP



©2020 ‐ 113 ‐ 28 April 2020

So the activities for this module …226

PESPreliminary

IPMP

With the basics in mind…

We will go through all PM activities as described by PMBOK Planning Process Group…

So that you can understand:• what needs to be done for CLC

Project Management• information that populates CLC

Project Management‐related documents.

And we will dive into more detail for particular supporting activities and techniques such as cost estimation.

Focus227

Given that CLC documents change over time, we will emphasise the

METHOD of determining actions and developing content so that you

can use what you need to populate the extant document suite.

MethodInformation/

ContentDocuments

OCDIPMP

yx

4a5

aa d

yx

4a5

avpqa

dyx

1 2 n

0

...

1.1 1.2 1.n...

1.1.1 1.1.2 1.1.n...

n.1 n.2 n.n...

n.n.1 n.n.2 n.n.n...

Needs Hierarchy Measures Hierarchy

Level 1

Level 2

Level 3

CI

COI

MOE

Level 4 MOP

Level n TPM

….

….

Mission



©2020 ‐ 114 ‐ 28 April 2020

Recall … PMBOK structure

• Summarised in a table of Project Management activities.

• Structured into:

– Process Groups.

– Knowledge Areas.

228

PMBOK Structure 229

Knowledge Areas

Project Management Process Groups









Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks









©2020 ‐ 115 ‐ 28 April 2020

PMBOK Structure 230

Knowledge Areas










Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







A PMP is Part of Integration Management231

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks









©2020 ‐ 116 ‐ 28 April 2020

KA: Integration Management

KA: Project Integration Management

• Ensures all project elements are integrated and coordinated and conflicting alternatives and expectations are managed.

• Key is development of the Project Management Plan (PMP):

– Incorporates all aspects of project activity.

– includes planning for each of the Knowledge Areas.

• Project executed in accordance with PMP.

• Change control is required.

233



©2020 ‐ 117 ‐ 28 April 2020

Planning Work to Produce PMP 234

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







KA Project Integration Management:

Develop Project Management Plan (PMP)

• Makes sure that all project activities are identified, combined, integrated, and coordinated.

• Key is development of the Project Management Plan (PMP).

• The project must be executed in accordance with the PMP.

• PMP will change from time to time but these must be approved.

235

PMP



©2020 ‐ 118 ‐ 28 April 2020


Develop Project Management Plan (PMP)

• Makes sure that all project activities are identified, combined, integrated, and coordinated.

• Key is development of the Project Management Plan (PMP).

• The project must be executed in accordance with the PMP.

• PMP will change from time to time but these must be approved.

236

PMP Equivalent is the Defence CLC Integrated Project Management

(IPMP)


Develop PMP

• Helps guide project execution and control.

• Helps communicate to stakeholders.

• Dynamic living, flexible.

• Baseline for measuring progress (starting point, a measurement, to be used for future comparison.

• Includes Scope, Time, Cost baselines for the project

237

We will see later what these mean



©2020 ‐ 119 ‐ 28 April 2020


Develop PMP238

Other Plans created in other KAs are subordinate to the PMP.

PMP

Scope Management Plan

Cost Management Plan

Schedule Management Plan

Stakeholder Management Plan

Risk Management Plan

…

CLC: Integrated Project Management Plan (IPMP)

• So … IPMP is equivalent to PMP.

• Should use the guidance in the PMBOK Planning Process Group to develop the necessary content for the IPMP.

• Develop subordinate plans as necessary and as defined by Defence.

• Defence view of IPMP changes so look for extant guidance (current IPMP guide under review).

239



©2020 ‐ 120 ‐ 28 April 2020

IPMP – Key Points

• Describes in more detail how PES will be implemented.

• Demonstrates that:

– strategy can be implemented within budget, schedule, quality and risk; and

– risks are manageable and acceptable.

• All FIC activities, deliverables and dependencies.

• Common reference for stakeholders (including IPT):

– Sponsor.

– FIC Providers.

– CASG Line Management.

– Project Office staff.

240

Source: IPMP Guide

IPMP – Key Points

• Basis for subordinate plans e.g. Systems Engineering Management Plan (SEMP).

• Basis for each FIC provider to report progress.

• Activities, roles and responsibilities, resources needed to deliver strategy.

• Includes the Integrated Master Schedule (IMS):

– major management control/decision points (i.e. stages);

– major products and outcomes for each stage;

– activities and resources required; and

– sequencing and dependencies.

241

Source: IPMP Guide



©2020 ‐ 121 ‐ 28 April 2020

Past IPMP Structure

Section 1. Project Summary

Section 2. IPMP Authority

Section 3. IPMP Maintenance

Section 4. Project Execution Strategy Summary

Section 5. Project Management Approach

…

242

Source: Past IPMP Guide – no longer used

Section 5. Project Management Approach

Past guidance looked like this – useful structure

5.1 Governance

5.2 Assurance

5.3 Major Activities

5.4 Budget

5.5 Coordination and Control

5.6 Stakeholders

5.7 Engineering Approach

5.8 Sustainment Approach

5.9 Commercial Approach

5.10 Project Office Management

243




©2020 ‐ 122 ‐ 28 April 2020

Past IPMP Structure

• …

• Annex A Project Management Planning Guidance

• Annex B Engineering Planning Guidance

• Annex C Sustainment Planning Guidance

• Annex D Commercial Planning Guidance

• Annex E Acceptance in Operational Service Planning Guidance

• Annex F Project Office Management

244


Past IPMP Annex A: PM Planning Guidance

A.1 Project GovernanceA.2 Project AssuranceA.3 Stage / Detailed PlanningA.4 Project Work Breakdown StructureA.5 Integrated Master ScheduleA.6 Integrated Project TeamA.7 Battle RhythmA.8 Risk and Contingency ManagementA.9 Issue ManagementA.10 Stakeholder ManagementA.11 Transition to SustainmentA.12 Acceptance into Operational Service A.13 Project Closure

245

Source: IPMP Guide



©2020 ‐ 123 ‐ 28 April 2020

Annex B: Engineering Planning Guidance

• Consult with the CASG Engineering and Technical COE to define an engineering approach appropriate for the Project.

• Areas to be defined:

B.1 Technical Objectives

B.2 Engineering Organisation and Responsibilities

B.3 Technical Risks and Mitigations

B.4 Technical Activities

246


Annex C: Sustainment Planning Guidance

• Consult with the CASG Materiel Logistics COE to define a sustainment approach appropriate for the Project.


C.1 Sustainment Objectives.

C.2 Sustainment Organisation and Responsibilities.

C.3 Sustainment Risks and Mitigations.

C.4 Sustainment Activities.




©2020 ‐ 124 ‐ 28 April 2020

Annex D: Commercial Planning Guidance

• Consult with the CASG COE to define a commercial approach appropriate for the Project.


D.1 Commercial Objectives.

D.2 Commercial Organisation and Responsibilities.

D.3 Commercial Risks and Mitigations.

D.4 Commercial Activities.

248


Annex E: AIOS Planning Guidance

• This Annex should be prepared in close consultation with, or by, the CM Representatives and Sponsor.


– E.1 Capability Baselines.

– E.2 Basis of Provisioning

– E.3 Facility and Training Area Needs

249




©2020 ‐ 125 ‐ 28 April 2020

Annex F: Project Office Management

• Consult with the CASG Program Management COE to define a project office management approach appropriate for the Project.


F.1 Organisation

F.2 Roles and Responsibilities

F.3 Decision Making Processes

F.4 Configuration and Data Management

F.5 Quality Management

F.6 Security

F.7 Work Health & Safety and Environment Management

250


Plan Scope Management


What?Define and agree the expected Project outcome.



©2020 ‐ 126 ‐ 28 April 2020

Next Step is to Plan Scope Management 252

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







Project Scope Management

• Ensures all work necessary to complete the project is included in scope.

• Unnecessary work is omitted.

• Need to plan Scope definition and ongoing management.

– Use dedicated SE tools e.g. WBS.

– Changes must be carefully controlled.

– Remember: Change isn’t necessarily bad but uncontrolled change is.

253



©2020 ‐ 127 ‐ 28 April 2020

KA Project Scope Management

• Purpose: Define and Control Project work to be done

254



255

This is vital to ensure that the Project is bounded. Otherwise

the Project outcomes may never be achieved…



©2020 ‐ 128 ‐ 28 April 2020



• Actions: Scope Management activities:

1. Plan Scope Management

2. Collect Requirements

3. Define Scope

4. Create Work Breakdown Structure (WBS)

256






3. Define Scope


• Outcomes: Scope Management documents:

– Requirements documents

– Requirements management plan

– Requirements traceability matrix

– Scope baseline (scope statement)

– WBS and WBS dictionary

257

WBS



©2020 ‐ 129 ‐ 28 April 2020

KA Project Scope Management: Defence CLC View





3. Define Scope


• Outcomes: Scope Management documents:

– Requirements documents

– Requirements management plan

– Requirements traceability matrix

– Scope baseline (scope statement)

– WBS and WBS dictionary

258

FPSOCD

Plan Scope Management: Requirements and Deliverables

Plan Scope Management activities

• Requirements elicitation and development

• Preparing a detailed project scope statement

• Creating, maintaining and approving the WBS

• Acceptance of the completed project deliverables

• Controlling changes to the project scope.

259

Requirements activities are a significant portion of early Project effort that must be thought out and planned.



©2020 ‐ 130 ‐ 28 April 2020

Two Aspects to Scope Definition: Product and Work

• Requirements—the product.

– What are the expected features of the shed?

– How will the features be defined and documented?

• Work Breakdown Structure (WBS)—the work.

– What is the work to define and build the shed?

– How will the WBS be developed and managed?

260

Task 1Task 2Task 3

KA Project Scope Management:

Requirements

• Requirements ‐ the product

– What are the features of the shed:

• how big?

• how high?

• how many access points …

– How will the features be defined and documented

• Text documents

• Design drawings

• Image

261



©2020 ‐ 131 ‐ 28 April 2020

Requirements Management Plan

• Articulates how requirements be:

– Collected

– Documented

– Controlled

262

Note that in Defence this will likely be included in the Systems Engineering Management Plan for a Project

Requirements Management Plan 263

Requirements Management Plan defines in what form the requirements will be captured and managed:

Requirements Document(Specification)

CAD DrawingOr Architecture package

Photo (rendering)

Requirements Traceability Matrix (RTM)



©2020 ‐ 132 ‐ 28 April 2020

CLC View: Requirements Management Planning

• Requirements generally captured in:

– Requirements documents: OCD, FPS, TCD, SOW.

– Databases e.g. DOORS.

– Architecture (Model) e.g. Enterprise Architecture.

• Importance: Defence assigns a relative importance to requirements e.g. mandatory, desirable, or nice to have.

• Tracing requirements:

– Must always show traceability to approved guidance.

– Requirements Traceability Matrices essential.

264

Now we focus on developing a WBS265

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks









©2020 ‐ 133 ‐ 28 April 2020

Create WBS

• Deliverable‐based breakdown of project components.

• Hierarchical description of the whole project.

• If it isn’t in the WBS, it isn’t in the project’s scope.

• A graphical overview of the project that helps:

– verify project scope, and

– communicate project scope.

• Each item is uniquely identified.

• Lowest units of work called work packages.

266

CASG View of WBS267

“Logical top‐down structure that defines and displays the Project scope for all of the work to be performed in accomplishing the Project objectives.”

“It facilitates a systematic planning process and simplifies the project by dividing it into manageable units.”

Source: CASG Knowledge Sharing sessions



©2020 ‐ 134 ‐ 28 April 2020

Use of WBS 268

• Central Project structure for:

– Cost estimation.

– Planning.

– Schedule construction.

– Resourcing.

– Risk assessment.

– Measuring Project progress.

– Reporting.

WBS: Best Practice269

“Establishing a product‐oriented WBS is a best practice because it allows a program to track cost and schedule by defined deliverables such as a hardware or software component”

Source: GAO‐09‐3SP, p65



©2020 ‐ 135 ‐ 28 April 2020

WBS: Structure

• Deconstructs end‐product:

– Successive levels of discrete pieces or elements.

– Relates each element to others and whole Project/system.

– Subdivides whole effort to enable management of:

• Cost: Cost Breakdown Structure (CBS).

• Scheduling.

• Planning and reporting.

• Assigning responsibility for the work.

– Becomes more detailed over time as more is known.

270

WBS: Structure

• Number of WBS levels depends on:

– Project complexity and risk.

– Detail needed for planning and managing.

– Assessing technical accomplishments.

– Measuring cost and schedule performance.

• Should be at least three levels:

– Level 1: Project/system as a whole.

– Level 2: Major Project/system elements.

– Level 3: Sub‐systems or lower‐level components eghardware, software, and services.

– Level 4: elements subordinate to the levels above.

271



©2020 ‐ 136 ‐ 28 April 2020

Common WBS Elements

In addition to Product‐oriented elements (physical pieces) every WBS includes other non‐product elements:• Project management eg Level 2.• Integration, assembly, test. • Systems engineering.• System test and evaluation.• Training.• Data.• Specific and common support equipment.• Operational and site activation.• Industrial facilities.• Initial spares and repair parts.

272

Example WBS: Replacing a Shed273

Shed

Remove Current Structure

Remove trees

Prepare siteDemolish Shed

Erect Shed Project

Management Approvals

Send in Paperwork

Install

driveway

Break up concrete

Remove Shed and Concrete

Remove Contents of

Shed

Lay Slab

Finish Shed

Order Shed

Power

Arrange Site inspection



©2020 ‐ 137 ‐ 28 April 2020

Defence WBS: Standard

• Defence (CASG) uses DEF(AUST) 5664 standard for constructing WBS (based on US MIL‐STD‐881C).

• Standardised approach ensures consistency for Project WBS/CBS.

274

WBS: For Defence Systems

• Generic (cost) structures available for military equipment:– Aircraft System.– Automated Information System.– Electronic Automated Software System.– Launch Vehicle System.– Missile System.– Ordnance System.– Sea System.– Space System.– Surface Vehicle System.– Unmanned Maritime System.– Unmanned Air Vehicle System.

• Available on CASG Program Management webpage.

275



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WBS: Summary

• Breaks ALL work of the project:

– into discrete deliverables (Work Packages)

– groups them into a logical hierarchy

• Work Packages can be allocated to organisations/individuals

• Work Package can be defined in terms of:

– What is the outcome

– How much it will cost

– How long it would take

• WBS Dictionary is needed to explain the headings

276

WBS provides the basis for whole Project Schedule, Costing, and Resourcing.


How? Figure out and agree how it will be done.

Task 1Task 2

Task 3

Plan Schedule Management



©2020 ‐ 139 ‐ 28 April 2020

PMBOK Structure 278

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







Develop Schedule Management Plan279

PMP






…



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• Processes to ensure the timely completion of the project.

• Steps of Schedule Management:

1. All project activities identified.

2. Sequence that these activities will be conducted in (including parallel).

3. Duration of each activity is estimated.

4. Produce a schedule.

• You need to understand or seek advice on Capability Practices (especially SE (hardware and software development) ILS, Procurement and Contacting) to properly define sequence and therefore create the schedule.

280


• Schedule needs to be managed and controlled throughout the project.

• Computer‐based tools eg PERT & CPM* Software (OPP, Microsoft Project).

• Tools don’t manage the schedule, they assist the Project Manager.

281

* Program Evaluation and Review Technique (PERT) is a network analysis technique used to estimate project duration by estimating the time required to complete each task (3 point averages) and considering their associated dependencies to determine the minimum time to complete a project i.e. Critical Path (CPM).

Source: http://acqnotes.com/acqnote/tasks/pert‐analysis



©2020 ‐ 141 ‐ 28 April 2020

Defence Lessons Learnt Analysis (2018)

• Significant proportion of problems in Defence relate to sound schedule construction and management:

• Necessary key attributes :

– sound logic between activities incl interdependencies;

– clear definition of key milestones and critical path;

– accurate estimation methods; and

– ability to incorporate external and emerging factors e.g. risk‐reduction efforts, re‐work and technical debt.

• Adequately constructed schedules:

– schedule risk analysis can be applied (Monte Carlo)

– Use as part of Performance Measurement Baseline (PMB) (scope, schedule, and cost baselines).

282

Integrated Master Schedule

• Primary schedule artefact for a Project.

• Part of the IPMP.

• Developed in greater detail as Project progresses.

• Shared view for all FIC providers and other stakeholders.

283



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Example: Shed WBS284

Shed


Remove trees


Erect Shed Project


Send in Paperwork

Install

driveway

Break up concrete


Remove Contents of

Shed

Lay Slab

Finish Shed

Order Shed

Power

Arrange Site inspection

Schedule Shed Work Packages 285

Shed


Remove tree


Build Shed Project


Send in Paperwork

Install

Driveway

Break up concrete


Remove Contents of

Shed

Lay Slab

Erect Shed

Order Shed

Power etc

Site inspection

May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20

Project Management

Lesson: Constructing a schedule requires sound logic between activities

including interdependencies



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Identify Milestones and Critical Path 286

Lesson: clear definition of key milestones and critical path

Milestone A

Milestone B

Milestone C

Tools for Schedule Development: Project Network Diagram

287

• Shows sequence and interdependencies

• Dates included for each activity

Remove trees

Demolish Shed

Ready to Erect Shed

Project Management

Obtain Approvals

Send in Paperwork

Break up concrete


Remove Contents of

Shed

Order Shed

Prepare for construction of

new shed

May‐Oct20

15‐18 May 20 22‐24 May 20 24‐25 May 20 25 May ‐20 Jun 20

22‐23 May 20

16 May 20

1 May 20 10 May 20



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Tools for Schedule Development: Bar (Gantt) Chart

288

Remove Old Shed

Remove trees

Acquire Shed

Obtain Approvals

Project Management


Commence Building

Remove Contents

Demolish Shed

Break up concrete

Remove Shed & Concrete

Construction

Schedule Mgt Plan: Define Milestone List

• Use SMART Criteria:

– Specific: can be clearly recognised

– Measurable: objectively measured

– Attainable: must be reasonable

– Relevant: tied clearly to the project

– Time‐framed: tied clearly to dates

289

Project Number and Name:

Milestone No. Milestone Name Estimated Completion date

A Old Shed Removal May 2020

B New Shed Built Oct 2020



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Defence View: IPMP IMS includes all FIC

• IPM is responsible for delivery of FIC in two ways:

– Delivers FIC for which lead Delivery Group is responsible.

– Coordinates and integrates all FIC.

• Respective FIC delivery groups accountable for delivering their elements as agreed in plans/agreements (IPMP, PDA)

290

FIC

Materiel (CASG)

ICT (CIOG)

Facilities (E&IG)

Training (CM)

Integrated Master Schedule Elements

Organisation

Command &Management

SupportFacilities


Major Systems

Industry

Supplies

Capability

Defence View: Plan Schedule Management

• Identify the key milestones. CLC Projects should include all approval milestones, major delivery milestones Introduction Into Service (IIS) for all FIC.

291

Project Name Milestone No Milestone Name Due date

1. Gate 0

2. Gate 1

3. Gate 2

4. Prime Contract Effective Date

5. Initial Operating Capability (IOC)

6. Final Operating Capability (FOC)



©2020 ‐ 146 ‐ 28 April 2020

How much? Calculate and agree the cost.Secure funding and set budget. $

Plan Cost Management

PMBOK Structure 293

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks









©2020 ‐ 147 ‐ 28 April 2020

Develop Cost Management Plan294

PMP






…

Project Cost Management: Four Aspects

• Plan cost management.

• Estimate Costs.

• Determine Budget.

• Control Costs.

295

Lesson: good cost estimation is vital to Project success



©2020 ‐ 148 ‐ 28 April 2020

Cost Estimation: CLC Requires TCO* View296




Gate 0 Gate 2Gate 1

ProjectCosts

In-Service Support Costs

$ $

5 years 25 years

* Total Cost of Ownership

e.g.

CLC: Why is Sound Cost Estimation Practice Important?

297

Consequence

• Stop/start funding introduces uncertainty/risk

• Project will likely fail

• Cost ‘blowouts’

• Waste of taxpayer money

• Government won’t consider proposal

• Approvals will be delayed or not given

• Compromises the IIP

• Capability won’t be fielded in time (or at all)

• Compromises the ADF

Reason

• PGPA Act: public resources, monies

• Need adequate funds for duration of the Project and In-Service.

• Decision Committees demand accuracy (eg IC)

• Dept of Finance has standards on cost estimates

• Need to be able to pay suppliers (Defence contracted commitment)

• Key basis to assess performance of Project

• VFM, Trade-Offs



©2020 ‐ 149 ‐ 28 April 2020

Expectations: Dept of Finance

• Estimates Memorandum 2017/55: Defence specific.

• Total Cost of Ownership (TCO), Whole of Lifecycle.

• Defence Capability, ICT, Facilities.

• Must provide Cost Model:

– all assumptions, data and formulae, other evidence.

• Cost Quality Standards:

– First to Second Pass (Govt view).

– Second Pass and Combined Pass (Govt view).

• Parametric or analogous costing methodology where no tender quality information.

298

So Good Cost Estimation in CLC Projects is Important…

• Compliance with legal obligations.

• Sound decision‐making (investment approvals).

• Budgeting.

• Contracting.

• Cost Management.

299



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Cost Estimation Overview

• Estimate future costs by relating historical cost data with the features of similar items or services.

300

Cost Estimation301

Historical Data

Inputs

Overarching Methodology, Model, Mathematical

Models and Estimating Techniques

Project Cost

Estimate

Parametric, Analogous, or Engineering build-up techniques

Analyse historical data

Apply models, techniques

Develop estimates/forecasts



©2020 ‐ 151 ‐ 28 April 2020

Key Challenges of Cost Estimation

• Complexity: need to choose the best approach:

– Project type.

– Project stage.

• Uncertainty:

– Solutions often at technology forefront (especially for military systems).

• Data:

– Access to historical cost data bases.

– Reliability of data.

• Resource (including time) constraints.

302

Cost Estimation Processes

Different forms of the process – similar elements

• ICEAA CE BoK: 7 steps

• GAO: 12 steps

• Australian DoD: 12 steps

303



©2020 ‐ 152 ‐ 28 April 2020

CE BoK: 7 Step Process 304

1. Develop a Work Breakdown Structure (WBS)

2. Develop a program/system baseline

3. Collect data

4. Analyse data

5. Develop cost estimating methodology for each cost

element

6. Put together and validate the cost model

7. Generate results and other required output, such as

reports

WBS

Baseline

Data Collection

Data Analysis

Methodology

Model

Results

12 Step Process 305

Initiation and Research

Assessment Analysis Presentation

1. Define estimate’s purpose

2. Develop estimating plan

3. Define program characteristics

4. Determine estimating structure

5. Identify ground rules and assumptions

6. Obtain data

7. Develop point estimate and compare it to an independent cost estimate

11. Present estimate to management for approval

12. Update the estimate to reflect actual costs and changes

8. Conduct sensitivity analysis

9. Conduct risk and uncertainty analysis

10. Document the estimate



©2020 ‐ 153 ‐ 28 April 2020

Defence uses the 12 Step Process 306

Source: CASG Program Management, Intranet Pages

CE Techniques: Key Points307

• Analogy:

– used early

– when little known about system.

• Parametric:

– useful across the lifecycle

– needs data (‘cost estimating relationships’)

• Engineering Build‐up:

– scope of work defined

– WBS developed

• Actual costs:

– lowest risk estimate

– difficult early in the Project

• Expert Opinion:

– assists and complements all of the above

Allmust be well‐reasoned, supported by evidence, technically sound and reasonable, whole of life (TCO)

Techniques applies as more is known about the Project/system



©2020 ‐ 154 ‐ 28 April 2020

Application of Techniques …308

Project cost estimating by Defence:

System cost estimating by vendor:

Analogous When only solution type/class is known (little is known)

When a similar (but not the same) product is being costed

Parametric When more is known about the type of system solution

When systems become better defined

Engineering Build-up When more quotes/tender quality data is available

When system design is fixed and more detailed technical and cost data available

Actual Costs When there is already production/ acquisition egC17

When production has commenced and costs are known

Purpose

Technique

… and any combination of above

Transition through CE techniques 309

Analogy/ Parametric

Engineering build-up

Actual Costs




Gate 0 Gate 2Gate 1

• Engineering Build-up • Actual Costs

• Analogy • Parametric



©2020 ‐ 155 ‐ 28 April 2020

Analogous Cost Estimation: Ship 310

Comms System

Ship

PropulsionSystem

Sensor Suite

HullCombat System

Whole ships have too much variability so whole analogy may not be sufficiently accurate but …

…can perform analogy for subsystems and aggregate.

Experts can help to identify analogous sub-systems and their intuitive estimating relationships.

Parametric Cost Estimation

• Links cost to measures of system size, functionality, or complexity ahead of detailed design definition.

– Uses known relationships between cost and specific parameters e.g. functional, physical, performance.

– Can show how different parameters influence the cost.

– Uses Cost Estimating Relationships (CERs).

• Usually performed in the early stages of a Project:

– Dependent on quality of data.

– Less risk than analogy.

311



©2020 ‐ 156 ‐ 28 April 2020

Parametric Cost Estimation: House 312

CER (Perth) = $900 - $1,200 per sqm

Cost of House

Size of House (sqm)

XX

X

X

X

X

X

XX

X X

50 100 150

($)

$100,000

1. Data collected and normalised

2. Conduct Regression analysis

3. Define relationship between parameter (size) and cost (CER)

4. CER validated (ie is it a strong predictor) via alternate data sets

5. Estimate cost of new house based on preferred size

Engineering Build‐Up Cost Estimation

• Build an overall cost estimate by summing detailed cost estimates done of individual work packages

• Based on structured engineering approach ie systems comprising sub‐systems, assemblies, sub‐assemblies, components etc

• Cost estimators work with engineers to develop structure (WBS) and estimates

• Based on estimating and summing effort from the lowest feasible level of work

313



©2020 ‐ 157 ‐ 28 April 2020


Advantages:

• Inclusion of all elements: can be accurate.

• unique to the Project in question.

• reveals major cost contributors.

Disadvantages:

• expensive and time consuming to implement.

• product specification must be well‐defined.

• requires in‐depth knowledge of all aspects eg software development.

• Can’t be used early in Project.

314

Engineering Build‐Up Cost Estimation 315

* Labour: $7,000 for install of all these items

Deck

House renovation

Bathroom LoungeKitchen Bedrooms

Bath Shower Tapware Vanity Tiles Toilet

Labour: $50-$60 per sqmMaterials: $15-80 per sqm

$300-$2,000*$300-$2,000* $1,500* $2,500*

$12,500$35,500 $3,000 $5,500 $15,500

$72,000



©2020 ‐ 158 ‐ 28 April 2020


• Provides a useful basis for combining different estimation techniques:

– Analogy.

– Parametric.

– Engineering build‐up (includes quotes).

– Actual costs.

– Expert opinion.

316

Shed Example 317

317

Parametric: Past Shed removal cost: • different sizes• different fittings

Cost

Size

Quote for this specific job: • Remove Shed : Quote

1. Build WBS

2. Estimate Cost of each element using the best costing technique

3. Aggregate +

Analogous:• Previous similar jobs

4. Iterate



©2020 ‐ 159 ‐ 28 April 2020

Cost Breakdown Structure: CBS

• Extends WBS into a logical breakdown and subdivision of work and associated costs into manageable elements.

• Consistent approach to CBS :

– facilitates estimation and control of costs within a Project.

– enables comparison of costs and estimates between Projects.

– enables recording of costs for elements for future use.

318

WBS: For Defence Systems

• Generic cost structures for military equipment:– Aircraft System.– Automated Information System.– Electronic Automated Software System.– Launch Vehicle System.– Missile System.– Ordnance System.– Sea System.– Space System.– Surface Vehicle System.– Unmanned Maritime System.– Unmanned Air Vehicle System.

• Available on CASG Program Management webpage.

319



©2020 ‐ 160 ‐ 28 April 2020

Defence CEAMOT

• Cost Estimation, Analysis and Modelling Tool (CEAMOT).

• CEAMOT has replaced the CDG 2‐Pass Approval Cost Estimate template in CASG.

• Managed by CASG Cost Estimation (CE) Services.

• CEAMOT application hosted on Defence Secret Network:

– DSN Intranet Homepage> IT Support Resources > Applications, Databases, Tools and Access information > CEAMOT.

320

CE Techniques: Key Points

• Selection of method is dependent on how much is known

• Whichever technique is used all estimates must be:

– well‐reasoned;

– supported by evidence;

– technically sound and reasonable; and

– whole of lifecycle:

• Total Cost of Ownership (TCO), and

• Acquisition and In‐Service support (Sustainment).

• Can use any combination of techniques.

321



©2020 ‐ 161 ‐ 28 April 2020

Plan Quality Management

322

Do it.Execute: check, control and assure

Develop Quality Management Plan323

PMP


QualityManagement Plan




…



©2020 ‐ 162 ‐ 28 April 2020

PMBOK Structure 324

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks








• Purpose: to ensure that the project will satisfy its needs.

• Quality Management activities which must be planned:

– Determine Quality standards/ measures

• Metrics measure quality performance

• ISO 9000 series, survey, performance attributes

– Plan Quality Assurance:

• activities aimed at enhancing confidence in project quality e.g. ISO 9001 audits

– Plan Quality Control:

• to check specific project results e.g. Test Program

325



©2020 ‐ 163 ‐ 28 April 2020


• Plan to ensure that the project will satisfy its needs.

– Determine what are the measures of quality:

• Requirements (Scope)

• Technical standards eg AUS for steel quality

• Quality standard of the vendor e.g. Systems Engineering processes aligned to ISO15288

– Planning the project to meet the quality measures

326

Quality Management for the Shed

• What will be the Quality Management for the shed project?

– Quality Assurance:

• Shed kit: accredited shed manufacturer

• Builder:–Processes and procedures–expertise/ reputation/ certification

– Quality Control:

• Inspections:–QPRC–Owner:

»Shed kit»Shed construction

327



©2020 ‐ 164 ‐ 28 April 2020

Defence Quality Management

• Defining Standards and Measures e.g.:

– Project Quality Assurance: ISO Standards: ISO9001 Quality Policies, Practices and Processes

• Quality Assurance:

– Supplier Quality Assurance (e.g. checking vendor processes and practices)

– System Design Reviews

– Company Scorecard

• Quality Control:

– Test Program (T&E)

– Check of manufactured items (supported by statistical analysis)

– Inspection

328

Plan Resource Management


How much? Calculate and agree the cost.$



©2020 ‐ 165 ‐ 28 April 2020

PMBOK Structure 330

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







Develop Resource Management Plan331

Plans created in other KAs are subordinate to the PMP

PMP


ResourceManagement Plan




…



©2020 ‐ 166 ‐ 28 April 2020

Project Resource Management: Purpose

• Most effective use of resources required for Project

• Ensure resources are available when needed to prevent Project disruption in relation to:

– Delays.

– Outcomes.

– Costs.

332

Resource Breakdown Structure (RBS)

• Hierarchical chart of resources required to execute the project:

– Usually a tree diagram.

– Broken down by function and type:

• use Project WBS and schedule as basis; and

• estimate of resources needed for each Project task/work package.

• Includes anything needed to complete the project successfully:

– People,

– Equipment,

– Materials,

– Project Management tools, and

– Fees and licences.

333



©2020 ‐ 167 ‐ 28 April 2020

Resource Analysis Table334

• For each Work Package in the WBS assess the resource required.

• Identify the resource, when it is required, its source and any considerations such as constraints.

Resource Analysis

Resource Category

Resource type Source Timing Key

Considerations

PersonnelProject Manager Owner 2019-2020 Part-time

BuilderElectrician

Equipment Removalist Boxes

Site FacilitiesSafety Fencing

Materials Shed Kit

Base Gravel

Fees and Licences

PM Software

Resource Analysis (use WBS)335

Shed Project

Remove Contents of Old Shed

Pack up contents

Place in Storage


Demolish Shed

Break up Concrete


Remove Trees Erect new shed

Order Shed

Prepare Site

Lay Concrete

Slab

Finish Shed

Connect Power

Approvals

Make Development Application

Arrange Site Inspection

Install

Driveway

Project Management

Resource Analysis

Resource Category

Resource type

Source Timing Key

Considerations

Personnel

Project Manager Owner

2019-2020

Part-time

Builder

Electrician

Removalist Family Oct 19 Uni

Concreter

Earthmover



©2020 ‐ 168 ‐ 28 April 2020

Resource Analysis (use WBS)336

Shed Project

Remove Contents of Old Shed

Pack up contents

Place in Storage


Demolish Shed

Break up Concrete


Remove Trees Erect new shed

Order Shed

Prepare Site

Lay Concrete

Slab

Finish Shed

Connect Power

Approvals

Make Development Application

Arrange Site Inspection

Install

Driveway

Project Management

Resource Breakdown Structure (RBS)337

Shed Project

RBS

People

Project Manager

Builder

Concreter

Electrician

Earthmover

Removalist

Equipment

Removalist Boxes

Site Facilities

Safety Fencing

Materials

Shed Kit

Base Gravel

Fees and Licences

PM Software



©2020 ‐ 169 ‐ 28 April 2020

Why do this resource analysis: personnel aspects338

WBS

Resource Analysis

RBS

Organisational/Team Structure

Project resource profile over Project life


Project Team Definition and Profile339

Organisational Structure

Project resource profile over Project life


• Informs • CASG Workforce planning• initial Project resource

requirements• Work Take‐on activities

• CASG Project Set‐up pre‐Gate 0

• Timely and targeted recruitment actions

Project Team definition and profile provides evidence for resource requests and recruitment activities



©2020 ‐ 170 ‐ 28 April 2020

Resourcing the Defence CLC Project 340

Two key types of resources:

• Workforce

• Funding

CASG Work/Project Take‐on Process

• Capability Development Investment Funds (CDIF)

• Integrated Investment Program (IIP) funds

CASG Work/Project Take‐on Process: Workforce

• Capability Manager/Sponsors request for CASG staff effort

• CASG Workforce Capacity Planners

• Project initiation

341




CASG Work Take‐on Guidance

Gate 0 Gate 2Gate 1



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CLC Project Resourcing: IIP Funding

• Single integrated program: all investment needed to deliver and sustain Australia’s defence capabilities.

• Includes equipment, infrastructure, ICT, science and technology, and workforce.

• Funds for a Project are included in the IIP:

– as part of broader approval eg Defence White Paper;

– through a Gate 1 decision;

– for urgent proposals, approval through Prime Minister or National Security Committee of Cabinet (NSC).

342

CLC Project Resourcing: CDIF Funding

Capability Development Investment Funds (CDIF):

• Capability Manager holds CDIF

• available for activities prior to approval of Project Funds

• where significant amounts of CDIF required separate government submissions are developed for approval

343



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• Funding line in IIP.

• Primarily for:

– activities prior to approval of Project Funds

– high‐level strategy development and

– early risk reduction activities for current and future IIP Programs and Projects.

• Allocation:

– Up to Gate 0 Program level CDIF allocated annually to CMs by IC.

– Post Gate 0 CDIF allocated by IC on case‐by‐case basis.

• CMs bid (Oct) for pre‐Gate 0 Program CDIF for coming FY.

• where significant amounts of CDIF required separate government submissions are developed for approval

344


• CDIF is for:

– early investigation activities to identify and research options;

– development of PES and Gate 0 Business Case;

– Smart Buyer workshops; and

– concept demonstrators.

• Early access to IIP funding should be sought before CDIF.

• Where IIP funding not available, additional CDIF can be requested.

• Consult with IPMB to discuss optimal funding mix between CDIF and early access to IIP provision.

345



©2020 ‐ 173 ‐ 28 April 2020

Project Funding across the CLC 346


Concepts

Risk Mitigation & Requirements

Setting



CDIF CDIF Project funds Project funds Scenario 1

IC approves CDIF allocation at Gate 0 ORearly access to IIP Project funds

Government approves IIP funding to Gate 2

CM provides CDIF funding to Gate 0

Government approves Project acquisition and funding to Project closure

IIP entry at Gate 1

Scenario 2 CDIF Project funds Project funds

CM provides CDIF funding to Gate 0

If no Gate 1 approval Project funds can be approved as part of Bi-annual Update

Proposal in IIP and/ornot going through Gate 1

Government approves Project acquisition and funding to Project closure


Plan Stakeholder Management



©2020 ‐ 174 ‐ 28 April 2020

PMBOK Structure 348

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







Develop Stakeholder Management Plan349


PMP


Communications Management Plan



Procurement Management Plan

…



©2020 ‐ 175 ‐ 28 April 2020


• Stakeholder management involves the processes required to:

• Identify: the people, groups, or organisations (the stakeholders) that could impact or be impacted by the project;

• Analyse: stakeholder expectations and their impact in the project; and

• Develop management strategies: appropriate to each stakeholder/groups.

350


Start with the CLC Accountability Model 351

Defence Committee


Capability Manager

Program Sponsor


Government

Delivery Group Head

Program Manager


Manager





SME

Requirements SME

Partnership

Contestability

IPT


Partnership



©2020 ‐ 176 ‐ 28 April 2020

Extend to other stakeholders… 352

Regulatory Agencies

Customer

Supplier

Defence Committee


Capability Manager

Program Sponsor


Government

Delivery Group Head

Program Manager


Manager




Government Submission SME

Requirements SME

Partnership

Co

nte

stab

ility

IPT


Partnership

Joint Team Enablers

Delivery Group

Strategy Policy Intelligence

Sponsor

Supplier/s Public……

Defence Projects: Many Stakeholders …

• VCDF Executive e.g. VCDF, HFD, HFI, HMSC, MSP

• JCG e.g. CJC, HIW, CJLC, COMDADC, CJHC, PMADF

• JOC e.g. CJOPS, DCJOPS, J1‐J8

• Navy e.g. CN, COMAUSFLT, HNC, HNE, COMTRAIN, COMSURF, DGNIW, DGLOG‐N, DGNPSI, DGENG‐N

• Army e.g. CA, DCA, HLC, Comd FORCOMD, SOCAUST, COMDs (e.g.1 Div)

• Air Force e.g. CAF, ACAUST, HAC, AWC, COMD TRGGP

• SPI e.g. FAS IP Div, FAS SP Div, Head DIO, Head AGIO

• CIOG e.g. FAS ICT Delivery, HICT Ops Strat J6, FAS ICT

• CASG e.g. FASJS, HMS, GM Subs, HLS etc

• DPG, E&IG, DSTG

353



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• A structured approach to identifying stakeholders.

• And defining the stakeholder management strategy for each stakeholder /group.

354

Stakeholder Analysis for Project X

Stakeholder Nature of Interest

(e.g. RACI)

Expectations Comments on interest Comments on and nature

of involvement (influence)

Chief of Navy

(CN)

Accountable as

Project Sponsor

Transition into

Service of Capability

that is FFP

Has an operational imperative

for capability realisation ASAP

Highest level of influence

Representatives involved in

all aspects of Project

DSTG Responsible for

provision of

scientific advice

To be involved in

early project analysis

Will be using involvement to

inform joint capability initiatives

Influence through CDS for

joint capability advice to

CDF

Stakeholder Management Plan: Chief of Navy Issues Actions Comments

Imperative for

platforms to be

operational by a

certain date

• Informed of Project progress on a weekly basis

• Provide a position for embedded CN representative in IPT

• CN approval for Industry engagement which may impact

other navy projects

• Previous issues with failure to coordinate system

acquisition with other platform activities

Plan Communications Management

355




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PMBOK Structure 356

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







Develop Communications Management Plan


357

PMP






…



©2020 ‐ 179 ‐ 28 April 2020

Defence Lessons Learnt Analysis

• Structured and comprehensive communications is critical to success of Projects and Programs particularly were there are:

– many stakeholders,

– interdependent organisational and contracted activities, and

– geographic separation.

• Significant proportion of problems in Defence projects relate to the absence of strong channels of communication being:

– established,

– understood, and

– maintained.

358


Key drivers of success are:

• recognised and utilised communications channels;

• clear communication protocols;

• clear issue resolution escalation paths;

• variety of communication means:

– video teleconferencing when geographically separated;

– appropriate face‐to‐face opportunities;

– DPN and DSN at contractor sites; and

– on‐site resident technical representative (for contracts);

• participants empowered to make decisions;

• …

359



©2020 ‐ 180 ‐ 28 April 2020


• …

• strong leadership: communicating, demonstrating, facilitating and maintaining a focus on operational outcomes;

• positive culture of collaboration and consultation:

– openness and trust;

– collaborative activities (e.g. risk reduction); and

– management action that promotes communication and trust especially for a dispersed organisation.

360

Communications Plan

• What is the information to be communicated?

• How will it be communicated?

• When will it be provided?

• Who undertakes the communication?

• Who receives it?

361



©2020 ‐ 181 ‐ 28 April 2020

Examples of Communication Options 362

Purpose of Communication

Frequency Mode of Communication

Owner/Organiser

Participants Product Recipients/ distribution

‘Stand-Up’ meetings

Twice daily (15 minutes max)

Face-to-Face meeting

IPM All team members

Whiteboard action register

Accessible to Project team

Team Meeting Weekly (1hour) Face-to-Face meeting


Project Actionregister

DRN access for IPMT

Project Status Report

Weekly Written IPM IPM Project Table update

DRN access for IPMT

Monthly Project Review

Monthly Written Project Sponsor Project Board Minutes and actions

Project Board members & keystakeholders

Program Review Quarterly Written Program Sponsor

PMSG Minutes and actions

PMSG, Line Management

Quarterly Report Quarterly Written Project Sponsor Project Sponsor and IPM

Report Senior Leadership

CASG Project Reporting as Part of Communications 363

Purpose of Communication

Frequency Mode of Communication

Owner/Organiser

Participants Product Recipients/ distribution

‘Stand-Up’ meetings

Twice daily (15 minutes max)

Face-to-Face meeting


Whiteboard action register

Accessible to Project team

Team Meeting Weekly (1hour) Face-to-Face meeting


Project Actionregister

DRN access for IPMT

Project Status Report

Weekly Written IPM IPM Project Table update

DRN access for IPMT

Monthly Project Review

Monthly Written Project Sponsor Project Board Minutes and actions

Project Board members & keystakeholders

Program Review Quarterly Written Program Sponsor

PMSG Minutes and actions

PMSG, Line Management

Quarterly Report Quarterly Written Project Sponsor Project Sponsor and IPM

Report Senior Leadership



©2020 ‐ 182 ‐ 28 April 2020

Key CASG Project Reporting Activities 364

Monthly Performance Reviews

Project Performance Review

Program Performance Review

Product Performance Review

Branch, Domain, Division

Performance Reviews

Quarterly Performance Report

(QPR)

Quarterly Reporting

Defence Annual Report Annual Reporting

MRS

Key CASG Project Reporting Activities: MRS 365






Performance Reviews


(QPR)

Quarterly Reporting

Defence Annual Report Annual Reporting

MRS

Monthly Reporting System (MRS)

• sources data from other systems eg Open Plan Professional (OPP)

• allows for manual data entry and report commentary.

• signed off by CASG Project managers, Branch Head and Division Heads.



©2020 ‐ 183 ‐ 28 April 2020

Key CASG Project Reporting Systems: PPRS366






Performance Reviews


(QPR)

Quarterly Reporting

Defence Annual Report Annual Reporting Project Performance Review

• Assess performance against Materiel Acquisition Agreement (MAA) or Product Delivery Agreements (PDA)

• Prepared by the IPM

• Uses standard performance criteria

• Addresses: • scope/capability• cost • workforce• schedule performance • significant risks and issues


Task 1

Task 2

Task 3

Plan Risk Management



©2020 ‐ 184 ‐ 28 April 2020

PMBOK Structure 368

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







Develop Risk Management Plan

Plans created in other KAs are subordinate to the PMP.

369

PMP


ResourceManagement Plan




…



©2020 ‐ 185 ‐ 28 April 2020

General Risk Management Process 370

Risk Assessment

Monitoring and Review

Communication and

Consultation

Establishing the Context

Risk Identification

Risk Analysis

Risk Evaluation

Risk Treatment

Source: AS/NZS ISO 31000:2018 370

Key CLC Project Behaviour: Manage Risk

• Manage risk:

– deal with ambiguity, and

– discourage risk aversion.

• Conscious risk reduction mindset throughout CLC.

• Use risk management techniques to:

– identify risks,

– develop risk profile, and

– determine risk mitigation/control.

371

Identify

Assess

Control

ReviewRisk



©2020 ‐ 186 ‐ 28 April 2020

Defence CLC Duties with Respect to Risk Management

• PGPA Act requires:

– Commonwealth entities to manage risk.

– Commonwealth Officers have obligations on risk management and risk control.

• Defence must establish and maintain:

– system of risk oversight and management; and

– system of internal control for the entity.

372

Source: PGPA Section 16

What is Risk in the Context of the CLC?

• CLC‐related risk is that capability investment (Program, Project, Product) will fail:

– delivered capability will not meet the need,

– costs become unaffordable,

– will be too late to address capability gap,

– can’t be maintained, and

– unsafe.

• Impact is that:

– Defence capability is deficient, and

– taxpayer money is wasted.

373



©2020 ‐ 187 ‐ 28 April 2020

Risk Management in the CLC

General risk management process:

1. Identify the risk ‘events’ or occurrences.

2. Estimate the likelihood of these happening (probability).

3. Estimate what the impact will be.

4. Figure out the level of risk and ranking between risk events.

5. Plan what to do to control, reduce, eliminate the risk events.

6. Implement risk mitigation, reduction.

374

Identify

Assess

Control

ReviewRisk

Risk Management and the CLC

Multiple risk frameworks in Defence relevant to CLC include but are not limited to:

• CLC Risk Mitigation Phase emphasising risk treatment.

• Smart Buyer Risk Framework.

• Technical Risk Assessment (TRA).

• Technical Implementation Risk Assessments (TIRA).

• Schedule Compliance Risk Assessment (SCRAM).

• Technical Risk Management.

375



©2020 ‐ 188 ‐ 28 April 2020

Risk Reduction and Incremental Commitment

• Risk or uncertainty low enough that decision‐makers will progress proposal and ultimately the Commonwealth is prepared to enter into a contract.

376

Risk Reduction

Risk Reduction

Commit funds for risk reduction activities


Risk Mitigation andRequirementsSetting

In-Service andDisposal

Gate 0 Gate 2Gate 1

Commit funds for Project (IIP)

Enter into major acquisition contract/s

$ $ $

CLC Risk Management: e.g. Acquisition Categories 377

Risk Category Risk Event examples Treatment/ Mitigation examples

Requirements Requirements incompleteNot verifiableAmbiguous

Additional requirements development Technical trial to determine constraintsPeer review

Technology Not matureUnproven

Develop technology further, trialField in increments

Schedule Schedule not achievable Redevelop WBS and schedule

Commercial Limited competition in market Contract with appropriate performance incentives

Project Integration Related Projects misaligned Establish Prime System Integrator to manage interdependencies

Defence Integration FIC delivery misaligned Establish Steering and review group

Financial Schedule slippage affects milestone achievement

Establish Program level so that flexibility to accommodate changes

Strategic Changing threat situation Ensure growth in system requirements and capabilities

Industry Industry not investing in field Funding to establish industry capability



©2020 ‐ 189 ‐ 28 April 2020

Implementing Risk Mitigation across the CLC378

Risk Reduction Studies(technical and

implementation risks) Further Requirements Definition

RFT + ODA(commercial risk)

Modelling and Simulation

Eg RFI(commercial risk)

System Reviews

Smart Buyer Risk

Profile

System Engineering Activities

Trade‐off studies

Trade‐off studies


Risk Mitigation andRequirements Setting

In‐Service andDisposal

Gate 0 Gate 2Gate 1

PES





Risk Reduction continues after Gate 2 through System Engineering and other practices including System Review activities


Task 1

Task 2

Task 3

Plan Procurement Management



©2020 ‐ 190 ‐ 28 April 2020

PMBOK Structure 380

Knowledge Areas





Management Plan






Scope Management



Schedule Management




• Control Costs

Quality Management



Resource Management








• Monitor Risks







Develop Procurement Management Plan

Plans created in other KAs are subordinate to the PMP.

381

PMP






…



©2020 ‐ 191 ‐ 28 April 2020


• Procurement Management: obtaining goods, materials & services.

• Could be as narrow as Solicitation, Sourcing and Contracting (depending on organisation):

– developing request documentation (against a given specification);

– conducting solicitation;

– evaluation of tenders;

– contracting activities including negotiation; and

– contract management including closure.

382


• Could be as broad as Supply Chain management:

– Where resources sourced.

– Quality of supplier and supplies.

– Delivery and receipt activities.

– Quality control once received:

• Does it meet specification?

• Is it counterfeit?

• Testing (e.g. x‐ray items (boards, components).

– Inspection of received goods and material: who?

– Storage arrangements.

383



©2020 ‐ 192 ‐ 28 April 2020

Planning CLC Procurement and Contracting

• Major focus for CLC Projects:

• Solicitation between Gates 1 and 2.

• Contract/s establishment (just after Gate 2).

• Contract management for Acquisition and Sustainment.

384






Contract Management

Contract Established

Contracting

Procurement Life Cycle activities for CLC

• Planning

1. Plan the procurement.

2. Develop ‘Request documentation’ such as RFT.

• Sourcing

3. Approach the market.

4. Evaluation.

5. Negotiation and contract signature.

• Managing

6. Contract management.

7. Disposal.

385




©2020 ‐ 193 ‐ 28 April 2020

Closing Remarks

• Every Project will benefit from use of recognised Project Management frameworks.

• This course has provided a brief overview of Project Management based on PMBOK:

• comprehensive initial view of Project Management;

• is consistent with CLC principles:– scalable,– can be readily tailored, and– to reflect the risk and complexity of a specific Project;

• shows how CASG applies PM in its own context.

• We hope it provides you a useful basis for learning more about Project Management!

386

Other Courses

• 14‐15 May – CLC Program‐level Artefacts

• 26‐27 May – CLC Project‐level Artefacts

• 10‐11 Jun – Systems Engineering Overview

• 23 Jun – Intro to Financial Awareness and Cost Modelling

• 25 Jun – Industry Acumen

387



©2020 ‐ 194 ‐ 28 April 2020


Dr Shari Soutberg

Professor Mike Ryan

388

CAPABILITY SYSTEMS CENTRE

Never Stand Still School of Engineering and Information Technology

Capability Systems Centre

About the Capability Systems CentreThe Capability Systems Centre is an independent think tank that offers cutting edge research and analysis to government, defence and industry.

The Centre, through its research, publications, education, and events, combines world-class academic expertise across a range of disciplinary areas relevant to the delivery of capability systems, from conceptual design to acquisition and disposal.

The Centre’s activities focus on systems acquisition and in particular on the application of systems science, systems thinking, complex systems, system of systems, systems engineering, requirements engineering, and systems engineering management and project management.

Centre Goals1. Conduct research and analysis relevant to systems

engineering and the delivery of defence capability.

2. Lead a national community of researchers and educators,focused on capability development challenges.

3. Contribute to undergraduate, postgraduate andprofessional education in systems engineering andcapability development.

Centre Skill SetsOur reasearch team at the Capability Systems Centre provide the following skill sets:

— Capability development and acquisition.

— Life cycle processes.

— Project management.

— Most engineering/IT/IS research domains.

— Space systems.

— Cyber security.

— Underwater networking.

— Modelling and simulation.

— Optimisation.

— Reliability engineering.

About UNSW CanberraThe Capability Systems Centre is an industry centre resident within UNSW Canberra, the only national academic institution with an integrated defense focus. Working at the intersection of a leading university and a military academy, UNSW Canberra has been educating defence, government and industry leaders for half a century.

The University is ranked 49th in the 2016 QS World University Rankings and leads all Australian universities in the field of Engineering/Technology and Computer Sciences, moving to 41st in the world in the prestigious Academic Ranking of World Universities (ARWU).

UNSW Australia has more than 50,000 students from over 120 countries

Research Areas

Modelling for Force Design

Models and simulations have always played an important role in engineering and systems engineering. Physical scale models, full-sized models, and computer models are commonly used in all forms of engineering and design. In recent times, interest in modelling has increased to span the full system lifecycle and there has been a significant focus on Model-based Systems Engineering (MBSE). The extension of formal modelling into all phases, and particularly the conceptual design phase, of a system development is a significant step and proponents of MBSE suggest that it will provide considerable benefits. However, modelling for conceptual design (for force design) requires a different approach since functions are being modelled, not physical system elements.

System Robustness and Future ProofingSystem robustness and future proofing are two key aspects for any system design. Robustness ensures a system is operable in environments other than its primary and future-proofing ensures a system’s future requirements are considered during conceptual design.

Complexity Measures for Systems EngineeringComplexity measures are informative indicators that may aid designers and system engineers in decision making process in all system life-cycle stages. A guiding principle is that “objects may not be multiplied beyond necessity” or “simple is better”. A key question is how this principle is applied to capability systems?

ModularityModularity is the degree to which a system’s components may be separated and recombined for a stated purpose. There will be a limit to the utility of modularisation in a context as it is a delicate balancing act – too few or too many modules may negatively impact system design or performance.

Holistic Project and Supply Chain ManagementProject management for complex systems involve a multi-tiered and distributed network of processes, resources, information flows, managerial models, and decision making. A holistic approach extending project management to consider the whole supply chain, provides opportunities for improving the project’s visibility, better integration and more efficient and effective delivery of products.

Capability AnalyticsCapability based planning (CBP) facilitates organisations to systematically develop capacity to achieve their business objectives in highly uncertain, dynamic and competitive environments. Successful implementation of CBP requires sophisticated analysis techniques that can identify, model, optimise and subsequently support integration of the optimized models of all linear and non-linear processes, functions and operations within an organization. Our focus

is the analysis frameworks, methods, techniques and tools.

Systems Thinking and System DynamicsSystems Thinking and System Dynamics (ST/SD) present a holistic framework of concepts, methodologies, techniques, and tools that can be used to support problem solving in dynamic complex systems to understand the complex interrelationships between system components, processes, boundaries, objectives, and stakeholders.

Trade Space Exploration for Composable SystemsComposable design methods provide a systematic approach to the combination of existing system elements into a range of system alternatives that can be quickly evaluated and compared in the context of a nominated organisation cost function. Value driven design (VDD) is becoming increasingly prevalent in the development of complex materiel systems. This sees performance requirements replaced with objective functions that equate organisational value. By considering all possible options of each component, a multitude of system designs is implied and can be used to develop the ‘Pareto frontier.’ This enables potential optimal solutions to be quickly compared based on their organizational value. The design tradespace is dynamically updated throughout the design process as a design-change is identified or a ‘value’ feedback is acknowledged by the customer organisation.

Trade Space Exploration for Reliability AllocationIn conventional approaches to reliability allocation, a system-level reliability target is apportioned amongst known system components such that the system cost is minimized without violating any reliability constraints on the individual components. Several analytical and heuristic optimisation techniques are applied to a system model in order to achieve the desired target at the lowest perceived cost. However, the system-level reliability target itself is determined during early stages of the system life-cycle when the finer details of the desired system are unknown, and the decision is typically influenced by factors such as prevailing norms, data from a parallel existing system and engineering judgement. The conventionally established system-level reliability target may therefore be sub-optimal. We propose a tradespace- exploration based approach to cost-optimized reliability allocation, which offers a number of (otherwise non-obvious) interesting solutions for consideration of the designer, as opposed to the single static solution sought in the conventional approach.

capabilitysystems.unsw.adfa.edu.au

CRICOS Provider Code 00098G | C151377 | 11/2015

\

To register: https://www.unsw.adfa.edu.au/study/professional-education-courses/programs

Professional Education Courses 2020

School of Engineering and Information Technology Capability Management

Capability Life Cycle (CLC) Management:

5-7 February

23-25 March

28-30 September

CLC Project Artefacts:

28-29 May

28-30 October

CLC Program Artefacts:

26-27 October

Introduction to Systems Engineering (Canberra):

16-18 March; 21-23 September

Systems Engineering Practice (Canberra):

16-20 March; 21-25 September

Introduction to Systems Engineering (Melbourne):

11-13 May

Systems Engineering Practice (Melbourne):

11-15 May

Introduction to Systems Engineering (Adelaide):

2-4 June

Business Case Development:

20-21 April

12-13 October

Cost Modelling:

22-23 April

15-16 October

Project Management

Introduction to Project Management:

11-13 March

14-16 September

Communications

Basic Communications Principles:

18-20 May

Introduction to Electronic Warfare:

25-27 May

Satellite Communications—Overview:

30 November

Satellite Communications—Intermediate:

30 November – 2 December

Satellite Communications—Advanced:

30 November – 4 December

Systems Thinking and Problem Solving

Addressing Complex Problems:

4-6 May

24-26 August

Systems Thinking & Modelling:

4-8 May

24-28 August

PRESENTED IN PARTNERSHIP

MILITARY COMMUNICATION AND INFORMATION SYSTEMS CONFERENCE AND EXPO

www.milcis.com.au

10–12 November 2020National Convention Centre

Canberra Australia

MilCIS is the only Australian conference that focuses

strategically on the crucial technologies, products, systems

and services associated with military communications and

information systems.

MilCIS Conference Delegate

MilCIS Conference delegates pay the relevant

conference registration fee and have full access to all conference

presentations (five parallel streams including the Expo presentations in the

Royal Theatre), daily breakfast and lunch product sessions, the exhibition hall, daily conference morning/afternoon

teas and lunches, and the conference dinner.